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Bloomberg Market Concepts: Currencies Module Questions with correct answers
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Bloomberg Market Concepts: Currencies Module Questions with correct answers
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Bloomberg Market Concepts: Currencies ModuleQuestions with correct answers
BBerg: How to see database of trade flows between major countries
Correct Answer-Type "trade flow" into command line and select ECTR
US only imported $5B goods from China in mid-1980's, $85B from
Japan (1986, top 15 importers to US) Correct Answer-
30 years later, China main source of imports to the US ($482B) Correct
Answer-
KNOWLEDGE CHECK: As outwards facing bar highest for US.....
Correct Answer-US has highest imports
Dealing with currencies used to be straightforward because Correct
Answer-They used to have predetermined, locked exchange rates. In
wake of "Bretton Woods Agreement," sealed by WW2 allies in NH,
USA, they all agreed to lock their currencies to the US dollar. The US
dollar in turn was convertible to gold at price of $35/ounce, with gold
available at Fort Knox, Kentucky (aka "gold standard")
During Vietnam War, US economy stagnated and attempt to lock
currencies ended when Nixon suspended convertibility of US dollar into
gold. This decision created the modern fiat currency regime. Today,
more than $5T is transacted daily in foreign exchange markets, aka FX
or forex markets.
, Unlike other markets, currency market operates __ hours in a day
Correct Answer-24
Approximately _____ weeks worth of global currency transactions
amounts to world annual GDP Correct Answer-three
3 main entities that trade currencies (in descending order of volume)
Correct Answer-1. Financial investors (buying/selling securities in
foreign currencies, 45% of volume)
2. Corporations (conducting global business selling goods/services
across borders.)
3. Travelers (business/leisure trips leading to change currency for
personal use)
PEG function Correct Answer-Used to see currencies which are pegged
to other countries' currency values (e.g. Hong Kong dollar pegged to
USD at 7.8 Hong Kong dollars)
Most liquid currency Correct Answer-US dollar
How can a government promise a fixed exchange rate to its businesses
and consumers? Correct Answer-One key mechanism many
governments use to peg currencies is called FX reserves, huge stack of
cash with which to manipulate supply of and demand for currency and
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