Bloomberg Concept Questions (solutions provided are all A+ Graded)
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Bloomberg Concept
Institution
Bloomberg Concept
Which of the following qualities of economic indicators do investors prize the most? correct answers timeliness of release
Why is the release of GDP statistics less interesting to investors than the release of other economic indicators? correct answers because GPD statistics are released well af...
Bloomberg Concept Questions (solutions provided are all A+
Graded)
Which of the following qualities of economic indicators do investors prize the most? correct answers timeliness of release
Why is the release of GDP statistics less interesting to investors than the release of other economic indicators? correct answers 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? correct answers GDP
Which economic indicator is most directly linked to unemployment? correct answers nonfarm payrolls
How accurately do GDP statistics portray the economy and why? correct answers inaccurately because the scope of GDP measurements can change
Which of the following lines is the best leading economic indicator? correct answers PMI
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of a recession in the United States? correct answers Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down.
How have economic forecasts for this country (US) evolved? correct answers minimal change
What is the main reason that investment banks create estimates of economic indicators? correct answers To know when specific economic data points are a positive or negative surprise
Which of the following is the biggest pitfall of economic indicators? correct answers They do not
consistently presage turning points
Which country is the fourth biggest importer and exporter? correct answers Japan
Which of the following is not an example of a failed peg? correct answers Hong Kong dollar against the U.S. dollar in 1997.
What generally happens when a central bank unexpectedly increases interest rates? correct answers The currency strengthens.
Which driver weakened the Swiss franc? correct answers A surprise change in inflation expectations What does the Big Mac index show? correct answers how currencies may be overvalued or undervalued
Which of the following are short-term drivers of currency valuation? correct answers surprise changes in interest rates, inflation, and trade
By what mechanism do interest rates affect currency values? correct answers Global investors are attracted by higher bond yields in high interest rate countries.
Which of these headlines could move a currency pair? correct answers U.S. Stocks rally on Fed's
Surprise reduction of Interest Rate.
What is the most common target inflation rate for an advanced economy? correct answers 2%
What was the primary goal of Abenomics? correct answers 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? correct answers prices decline
Were the two oil crises in the 1970s linked to deflation or inflation? correct answers inflation
What is the median estimate for the number of Japanese yen per euro for calendar year 2020? correct answers 126
What is the difference between Norma and RBC's estimate for the Japanese yen/euro currency pair for the end of Q1 2018? correct answers 40 yen
Why would Jack Welch suggest putting all company plants on barges? correct answers To respond quickly to changes in the currency markets.
Which of the following options is the best way for investors to manage currency risk? correct answers 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? correct answers US Government bonds are considered low risk
Why is fixed income called Fixed income? correct answers Because the repayment amounts and timings are fixed for ordinary bonds
Why does the United States have a strong reputation for creditworthiness? correct answers because it has the right to tax the wealthiest population on earth.
What is one reason why foreign governments lend to the U.S. government? correct answers To build liquid FX reserves
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