BLOOMBERG MARKET CONCEPTS KNOWLEDGE
CHECK WITH VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| PASS WITH THE BEST GRADES.
Use the chart below to answer the question. How many Danish crowns (DDK) will
buy 100 Japanese yen (JPY)? - Correct Answer-5.868
According to the Big Mac index screen, which of the following four countries'
currency is the most undervalued? - Correct Answer-Mexico
What generally happens when a central bank unexpectedly decreases interest rates?
- Correct Answer-The currency weeakens
Which driver weakened the Swiss fanc? - Correct Answer-A surprise change in
inflation expectations
What does the Big Mac index show? - Correct Answer-How currencies may be
overvalued or undervalued
Which of the following are short-term drivers of currency valuation? - Correct
Answer-Surprise changes in interest rates, inflation, and trade.
In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What
does this event reflect about the nature of GDP? - Correct Answer-If the
measurement of economic activity evolves, GDP can change.
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? - Correct Answer-The country has inflation. The top line is nominal
growth and the bottom line is real growth.
Which of the following lines is the best leading economic indicator? - Correct
Answer-PMI
GDP per capita is a measure of prosperity because it divides the total GDP of a
country by its population. Which of the below forecasts for a country would result
in the highest GDP per capita growth? - Correct Answer-An increase of 2% in
GDP and a population growth of 0%
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts
at the onset of a recession in the United States? - Correct Answer-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? - Correct Answer-Timeliness of release
Why is the release of GDP statistics less interesting to investors than the release of
other economic indicators? - Correct Answer-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? - Correct Answer-GDP
Which economic indicator is most directly linked to the average person's cost of
living? - Correct Answer-CPI
CHECK WITH VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| PASS WITH THE BEST GRADES.
Use the chart below to answer the question. How many Danish crowns (DDK) will
buy 100 Japanese yen (JPY)? - Correct Answer-5.868
According to the Big Mac index screen, which of the following four countries'
currency is the most undervalued? - Correct Answer-Mexico
What generally happens when a central bank unexpectedly decreases interest rates?
- Correct Answer-The currency weeakens
Which driver weakened the Swiss fanc? - Correct Answer-A surprise change in
inflation expectations
What does the Big Mac index show? - Correct Answer-How currencies may be
overvalued or undervalued
Which of the following are short-term drivers of currency valuation? - Correct
Answer-Surprise changes in interest rates, inflation, and trade.
In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What
does this event reflect about the nature of GDP? - Correct Answer-If the
measurement of economic activity evolves, GDP can change.
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? - Correct Answer-The country has inflation. The top line is nominal
growth and the bottom line is real growth.
Which of the following lines is the best leading economic indicator? - Correct
Answer-PMI
GDP per capita is a measure of prosperity because it divides the total GDP of a
country by its population. Which of the below forecasts for a country would result
in the highest GDP per capita growth? - Correct Answer-An increase of 2% in
GDP and a population growth of 0%
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts
at the onset of a recession in the United States? - Correct Answer-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? - Correct Answer-Timeliness of release
Why is the release of GDP statistics less interesting to investors than the release of
other economic indicators? - Correct Answer-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? - Correct Answer-GDP
Which economic indicator is most directly linked to the average person's cost of
living? - Correct Answer-CPI
