BMC (Bloomberg) Questions with Correct Answers
Updated And Latest
/. Which of the following qualities of economic indicators do investors prize the most? -
Answer-✅timeliness of release
/.Why is the release of GDP statistics less interesting to investors than the release of
other economic indicators? - Answer-✅because GPD statistics are released well after
other economic indicators
/.Which of the following important US economic indicators is only available on a
quarterly basis? - Answer-✅GDP
/.Which economic indicator is most directly linked to unemployment? - Answer-
✅nonfarm payrolls
/.How accurately do GDP statistics portray the economy and why? - Answer-
✅inaccurately because the scope of GDP measurements can change
/.Which of the following lines is the best leading economic indicator? - Answer-✅PMI
/.What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at
the onset of a recession in the United States? - Answer-✅Nonfarm payrolls go down,
the PMI indicator goes DOWN, the housing starts goes down.
/.How have economic forecasts for this country (US) evolved? - Answer-✅minimal
change
/.What is the main reason that investment banks create estimates of economic
indicators? - Answer-✅To know when specific economic data points are a positive or
negative surprise
/.Which of the following is the biggest pitfall of economic indicators? - Answer-✅They
do not consistently presage turning points
/.Which country is the fourth biggest importer and exporter? - Answer-✅Japan
/.Which of the following is not an example of a failed peg? - Answer-✅Hong Kong dollar
against the U.S. dollar in 1997.
, /.What generally happens when a central bank unexpectedly increases interest rates? -
Answer-✅The currency strengthens.
/.Which driver weakened the Swiss franc? - Answer-✅A surprise change in inflation
expectations
/.What does the Big Mac index show? - Answer-✅how currencies may be overvalued or
undervalued
/.Which of the following are short-term drivers of currency valuation? - Answer-
✅surprise changes in interest rates, inflation, and trade
/.By what mechanism do interest rates affect currency values? - Answer-✅Global
investors are attracted by higher bond yields in high interest rate countries.
/.Which of these headlines could move a currency pair? - Answer-✅U.S. Stocks rally on
Fed's Surprise reduction of Interest Rate.
/.What is the most common target inflation rate for an advanced economy? - Answer-
✅2%
/.What was the primary goal of Abenomics? - Answer-✅to halt the vicious cycle of
deflation
/.Here is the vicious deflationary cycle. What step connects the lower left gray arrow to
the upper right blue arrow? - Answer-✅prices decline
/.Were the two oil crises in the 1970s linked to deflation or inflation? - Answer-✅inflation
/.What is the median estimate for the number of Japanese yen per euro for calendar
year 2020? - Answer-✅126
/.What is the difference between Norma and RBC's estimate for the Japanese yen/euro
currency pair for the end of Q1 2018? - Answer-✅40 yen
/.Why would Jack Welch suggest putting all company plants on barges? - Answer-✅To
respond quickly to changes in the currency markets.
/.Which of the following options is the best way for investors to manage currency risk? -
Answer-✅By locking in forward rates for known foreign payments.
/.What quality of U.S. government bonds causes investors to buy them when market
volatility rises? - Answer-✅US Government bonds are considered low risk
Updated And Latest
/. Which of the following qualities of economic indicators do investors prize the most? -
Answer-✅timeliness of release
/.Why is the release of GDP statistics less interesting to investors than the release of
other economic indicators? - Answer-✅because GPD statistics are released well after
other economic indicators
/.Which of the following important US economic indicators is only available on a
quarterly basis? - Answer-✅GDP
/.Which economic indicator is most directly linked to unemployment? - Answer-
✅nonfarm payrolls
/.How accurately do GDP statistics portray the economy and why? - Answer-
✅inaccurately because the scope of GDP measurements can change
/.Which of the following lines is the best leading economic indicator? - Answer-✅PMI
/.What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at
the onset of a recession in the United States? - Answer-✅Nonfarm payrolls go down,
the PMI indicator goes DOWN, the housing starts goes down.
/.How have economic forecasts for this country (US) evolved? - Answer-✅minimal
change
/.What is the main reason that investment banks create estimates of economic
indicators? - Answer-✅To know when specific economic data points are a positive or
negative surprise
/.Which of the following is the biggest pitfall of economic indicators? - Answer-✅They
do not consistently presage turning points
/.Which country is the fourth biggest importer and exporter? - Answer-✅Japan
/.Which of the following is not an example of a failed peg? - Answer-✅Hong Kong dollar
against the U.S. dollar in 1997.
, /.What generally happens when a central bank unexpectedly increases interest rates? -
Answer-✅The currency strengthens.
/.Which driver weakened the Swiss franc? - Answer-✅A surprise change in inflation
expectations
/.What does the Big Mac index show? - Answer-✅how currencies may be overvalued or
undervalued
/.Which of the following are short-term drivers of currency valuation? - Answer-
✅surprise changes in interest rates, inflation, and trade
/.By what mechanism do interest rates affect currency values? - Answer-✅Global
investors are attracted by higher bond yields in high interest rate countries.
/.Which of these headlines could move a currency pair? - Answer-✅U.S. Stocks rally on
Fed's Surprise reduction of Interest Rate.
/.What is the most common target inflation rate for an advanced economy? - Answer-
✅2%
/.What was the primary goal of Abenomics? - Answer-✅to halt the vicious cycle of
deflation
/.Here is the vicious deflationary cycle. What step connects the lower left gray arrow to
the upper right blue arrow? - Answer-✅prices decline
/.Were the two oil crises in the 1970s linked to deflation or inflation? - Answer-✅inflation
/.What is the median estimate for the number of Japanese yen per euro for calendar
year 2020? - Answer-✅126
/.What is the difference between Norma and RBC's estimate for the Japanese yen/euro
currency pair for the end of Q1 2018? - Answer-✅40 yen
/.Why would Jack Welch suggest putting all company plants on barges? - Answer-✅To
respond quickly to changes in the currency markets.
/.Which of the following options is the best way for investors to manage currency risk? -
Answer-✅By locking in forward rates for known foreign payments.
/.What quality of U.S. government bonds causes investors to buy them when market
volatility rises? - Answer-✅US Government bonds are considered low risk
