BLOOMBERG MARKET CONCEPTS
COMPREHENSIVE ASSESSMENT COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS
●● 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.
COMPREHENSIVE ASSESSMENT COMPLETE
QUESTIONS AND VERIFIED SOLUTIONS
●● 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.
