BMC Exam Questions and Answers
2023
Which driver weakened the Swiss franc? (C) - -a) A surprise change in net export
expectations
b)A surprise change in interest rates expectations
c)A surprise change in inflation expectations
d)A surprise change in valuation expectations
-How accurately do GDP portray the economy and why? - -Inaccurately because the
scope of GDP measurements can change.
-Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in
consumption of domestic and foreign luxury goods. In one year, the dollar growth in
imports is greater than the dollar growth in domestic consumption. Assuming nothing
else has changed, what happened to GDP? - -It went down
-Here is the most important economic data for Australia and Sweden. which economy
did better year-over-year (YOY) in the fourth quarter of 2013 compared to the fourth
quarter of 2012? Use the two charts to investigate. - -Sweden performed better
-In the United States, why is there a strong correlation between unemployment and
GDP? - -Consumer spending accounts for two-thirds of the U.S. economy when the
number of unemployed consumers rises, there is less consumer spending.
-Here is a chart showing both nominal GDP growth and real GDP growth for a country.
Which of the following can be a true statement at the time the chart was captured? - -
The country has deflation. The bottom line is nominal growth and the top line is real
growth.
-Which of the following lines is the best leading economic indicator? - -PMI
-The "misery index" is often cited in the media as a way to measure consumer pain. It is
defined as the inflation rate plus the unemployment rate..... - -Argentina
-What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at
the onset of a recession in the United States? - -Nonfarm payrolls go down, the PMI
indicator goes DOWN, the housing starts goes down.
, -Which of the following qualities of economic indicators do investors prize the most? - -
Timeliness of release
-Why is the release of GDP statistics less interesting to investors than the release of
other economic indicators? - -Because GDP statistics are released well after other
economic indicators.
-Which of the following important U.S. economic indicators is only available on a
quarterly basis? - -GDP
-Which economic indicator is most directly linked to unemployment? - -nonfarm
payrolls
-Here is the economic calendar for the UK for august 2013. Examine indicators like
PMI,...... - -Above expectations
-This chart was captured in mid-2014. At that point in time, which of the following
terms..... - -Deceleration
-How have economic forecasts for this county evolved? - -Minimal Change
-These charts show data for four countries as of early 2016. For each country, the purple
line.... - -Russia
-What is the main reason that investment banks create estimates of economic
indicators? - -To know when specific economic data points are a positive or negative
surprise.
-Which of the following is the biggest pitfall of economic indicators? - -They do not
consistently presage turning points.
-Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment.... - -260
-Which country is the fourth biggest importer and exporter? - -Japan
-In 1994, the Mexican peso declined against the US dollar during so-called "Tequila
Crisis.".... - -Both countries had large dollar-denominated debts
-Using the chart given, how many NZD can you buy with 100 AUD? - -107.89
2023
Which driver weakened the Swiss franc? (C) - -a) A surprise change in net export
expectations
b)A surprise change in interest rates expectations
c)A surprise change in inflation expectations
d)A surprise change in valuation expectations
-How accurately do GDP portray the economy and why? - -Inaccurately because the
scope of GDP measurements can change.
-Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in
consumption of domestic and foreign luxury goods. In one year, the dollar growth in
imports is greater than the dollar growth in domestic consumption. Assuming nothing
else has changed, what happened to GDP? - -It went down
-Here is the most important economic data for Australia and Sweden. which economy
did better year-over-year (YOY) in the fourth quarter of 2013 compared to the fourth
quarter of 2012? Use the two charts to investigate. - -Sweden performed better
-In the United States, why is there a strong correlation between unemployment and
GDP? - -Consumer spending accounts for two-thirds of the U.S. economy when the
number of unemployed consumers rises, there is less consumer spending.
-Here is a chart showing both nominal GDP growth and real GDP growth for a country.
Which of the following can be a true statement at the time the chart was captured? - -
The country has deflation. The bottom line is nominal growth and the top line is real
growth.
-Which of the following lines is the best leading economic indicator? - -PMI
-The "misery index" is often cited in the media as a way to measure consumer pain. It is
defined as the inflation rate plus the unemployment rate..... - -Argentina
-What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at
the onset of a recession in the United States? - -Nonfarm payrolls go down, the PMI
indicator goes DOWN, the housing starts goes down.
, -Which of the following qualities of economic indicators do investors prize the most? - -
Timeliness of release
-Why is the release of GDP statistics less interesting to investors than the release of
other economic indicators? - -Because GDP statistics are released well after other
economic indicators.
-Which of the following important U.S. economic indicators is only available on a
quarterly basis? - -GDP
-Which economic indicator is most directly linked to unemployment? - -nonfarm
payrolls
-Here is the economic calendar for the UK for august 2013. Examine indicators like
PMI,...... - -Above expectations
-This chart was captured in mid-2014. At that point in time, which of the following
terms..... - -Deceleration
-How have economic forecasts for this county evolved? - -Minimal Change
-These charts show data for four countries as of early 2016. For each country, the purple
line.... - -Russia
-What is the main reason that investment banks create estimates of economic
indicators? - -To know when specific economic data points are a positive or negative
surprise.
-Which of the following is the biggest pitfall of economic indicators? - -They do not
consistently presage turning points.
-Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment.... - -260
-Which country is the fourth biggest importer and exporter? - -Japan
-In 1994, the Mexican peso declined against the US dollar during so-called "Tequila
Crisis.".... - -Both countries had large dollar-denominated debts
-Using the chart given, how many NZD can you buy with 100 AUD? - -107.89
