BLOOMBERG UPDATED Questions and
CORRECT Answers
Inaccurately because the scope of GDP measurements can change. - CORRECT ANSWER-
How accurately do GDP portray the economy and why?
It went down - CORRECT ANSWER- Consider the formula GDP = C+I+G+(X-M). A
country is undergoing a boom in consump...
BLOOMBERG UPDATED Questions and
CORRECT Answers
Inaccurately because the scope of GDP measurements can change. - CORRECT ANSWER-
✔✔How accurately do GDP portray the economy and why?
It went down - CORRECT ANSWER- ✔✔Consider the formula GDP = C+I+G+(X-M). A
country is undergoing a boom in consumption of domestic and foreign luxury goods. In one
year, the dollar growth in imports is greater than the dollar growth in domestic consumption.
Assuming nothing else has changed, what happened to GDP?
C= Consumer spending
I = Investment (Gross Fixed Capital Formation)
G= Government Spending
X= Exports
M= Imports - CORRECT ANSWER- ✔✔what is the meaning of each letter in the GDP
formula, C+I+G+(X-M).
Sweden performed better - CORRECT ANSWER- ✔✔Here is the most important economic
data for Australia and Sweden. which economy did better year-over-year (YOY) in the fourth
quarter of 2013 compared to the fourth quarter of 2012? Use the two charts to investigate.
Consumer spending accounts for two-thirds of the U.S. economy when the number of
unemployed consumers rises, there is less consumer spending. - CORRECT ANSWER-
✔✔In the United States, why is there a strong correlation between unemployment and GDP?
The country has deflation. The bottom line is nominal growth and the top line is real growth.
- CORRECT ANSWER- ✔✔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?
PMI - CORRECT ANSWER- ✔✔Which of the following lines is the best leading economic
indicator?
, Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down. -
CORRECT ANSWER- ✔✔What typically happens to nonfarm payrolls, the PMI indicator,
and housing starts at the onset of a recession in the United States?
Timeliness of release - CORRECT ANSWER- ✔✔Which of the following qualities of
economic indicators do investors prize the most?
Because GDP statistics are released well after other economic indicators. - CORRECT
ANSWER- ✔✔Why is the release of GDP statistics less interesting to investors than the
release of other economic indicators?
GDP - CORRECT ANSWER- ✔✔Which of the following important U.S. economic
indicators is only available on a quarterly basis?
nonfarm payrolls - CORRECT ANSWER- ✔✔Which economic indicator is most directly
linked to unemployment?
To know when specific economic data points are a positive or negative surprise. - CORRECT
ANSWER- ✔✔What is the main reason that investment banks create estimates of economic
indicators?
They do not consistently presage turning points. - CORRECT ANSWER- ✔✔Which of the
following is the biggest pitfall of economic indicators?
Japan - CORRECT ANSWER- ✔✔Which country is the fourth biggest importer and
exporter?
Hong Kong dollar against the U.S. dollar in 1997. - CORRECT ANSWER- ✔✔Which of the
following is not an example of a failed peg?
The currency strengthens. - CORRECT ANSWER- ✔✔What generally happens when a
central bank unexpectedly increases interest rates?
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