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Bloomberg Market Concepts Certification questions with correct answer1
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Bloomberg Market Concepts Certification questions with correct answer1
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Bloomberg Market Concepts Certification questionswith correct answers
Which action can a country take to potentially weaken its currency and
enhance global competitiveness?
A) Implementing trade liberalization policies to reduce barriers
B) Increasing policy rates to attract foreign investment
C) Intervening in the currency market to lower the exchange rate Correct
Answer-C) Intervening in the currency market to lower the exchange
rate
What is the most common measure central banks seek to Target
directly?
A) inflation
B) money supply
C) GDP growth Correct Answer-A) inflation
Which of these headlines is most likely to move a currency pair in the
short term?
A) Pharma Price Hikes Make the Sector More Attractive to Investors
,B)Hong Kong Remains Firmly Committed to the Dollar Peg
C) HKMA official says U.S. Stocks Sink on Fed's Surprise Increase of
Interest Rate Correct Answer-C) HKMA official says U.S. Stocks Sink
on Fed's Surprise Increase of Interest Rate
Which type of foreign exchange transaction is most susceptible to
counterparty risk due to time zone differences?
Bank-to-bank transactions
Corporation-to-corporation transactions
Bank-to-corporation transactions Correct Answer-Bank-to-bank
transactions
What role does CLS Bank play in a real-time gross settlement (RTGS)
approach to FX settlement?
Eliminating operational risk entirely
Providing legal oversight for settlement processes
Monitoring FX payments in real-time Correct Answer-Monitoring FX
payments in real-time
, A multinational retail company based in the United States imports
products from China and pays its suppliers in Chinese yuan (CNY). If
the exchange rate between the US Dollar (USD) and the Chinese Yuan
(CNY) changes from 1 USD 6.50 CNY to 1 USD = 6.20 CNY, what
impact would this exchange rate movement have on the company's
import costs in USD terms?
Increase in import costs
Decrease in import costs
No impact on import costs Correct Answer-Increase in import costs
Which type of foreign exchange risk primarily pertains to the potential
impact of exchange rate fluctuations when a company converts its
financial statements from one currency to another?
Operational risk
Transaction risk
Translation risk Correct Answer-Translation risk
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