BMC Exam 2023/2024 Questions and Answers
1. Which driver weakened the Swiss franc? (C): a) A surprise change in net
export expectations
b) A surprise change in interest rates expectations
c) A surprise change in inflation expectations
d) A surprise change in valuation expectations
2. How accurately do GDP portray the economy and why?: Inaccurately be-
cause the scope of GDP measurements can change.
3. 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?: It went down
4. 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.-
: Sweden performed better
5. In the United States, why is there a strong correlation between unemploy-
ment and GDP?: Consumer spending accounts for two-thirds of the U.S. econ-
omy when the number of unemployed consumers rises, there is less consumer
spending.
6. Here is a chart showing both nominal GDP growth and real GDP growth fo
a country. Which of the following can be a true statement at the time the cha
was captured?: The country has deflation. The bottom line is nominal growth and
the top line is real growth.
7. Which of the following lines is the best leading economic indicator?: PMI
8. The "misery index" is often cited in the media as a way to measure
consumer pain. It is defined as the inflation rate plus the unemployment
rate ...... Argentina
9. What typically happens to nonfarm payrolls, the PMI indicator, and housin
starts at the onset of a recession in the United States?: Nonfarm payrolls go
down, the PMI indicator goes DOWN, the housing starts goes down.
10. Which of the following qualities of economic indicators do investors priz
the most?: Timeliness of release
11. Why is the release of GDP statistics less interesting to investors than the
release of other economic indicators?: Because GDP statistics are released
well after other economic indicators.
, BMC Exam Questions and Answers 2022
12. Which of the following important U.S. economic indicators is only avail-
able on a quarterly basis?: GDP
13. Which economic indicator is most directly linked to unemployment?: -
nonfarm payrolls
14. Here is the economic calendar for the UK for august 2013. Examine
indicators like PMI,......: Above expectations
15. This chart was captured in mid-2014. At that point in time, which of the
following terms. ..... Deceleration
16. How have economic forecasts for this county evolved?: Minimal Change
17. These charts show data for four countries as of early 2016. For each
country, the purple line ..... Russia
18. What is the main reason that investment banks create estimates of eco-
nomic indicators?: To know when specific economic data points are a positive o
negative surprise.
19. Which of the following is the biggest pitfall of economic indicators?: The
do not consistently presage turning points.
20. Here is a chart displaying estimates of the initial jobless claims indicator
one of the main unemployment. 260
21. Which country is the fourth biggest importer and exporter?: Japan
22. In 1994, the Mexican peso declined against the US dollar during so-called
"Tequila Crisis."....: Both countries had large dollar-denominated debts
23. Using the chart given, how many NZD can you buy with 100 AUD?: 107.8
24. Allison lives in America and has just retired. It is early 2016. Norway
25. Review the currency pair charts for the Barbadian dollar agains the
Jamaican dollar......: Hong Kong dollar against the Macanese pataca
26. Which of the following is not an example of a failed peg?: Hong Kong dolla
against the U.S. dollar in 1997.
27. Use the cart below to answer the question. How many Danish crown
(DKK) will buy 100 (JPY): 5.360
28. According to the Big Mac index screen, which of the following four
countries' currency is the most undervalued?: China
29. What generally happens when a central bank unexpectedly increases
interest rates?: The currency strengthens.
1. Which driver weakened the Swiss franc? (C): a) A surprise change in net
export expectations
b) A surprise change in interest rates expectations
c) A surprise change in inflation expectations
d) A surprise change in valuation expectations
2. How accurately do GDP portray the economy and why?: Inaccurately be-
cause the scope of GDP measurements can change.
3. 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?: It went down
4. 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.-
: Sweden performed better
5. In the United States, why is there a strong correlation between unemploy-
ment and GDP?: Consumer spending accounts for two-thirds of the U.S. econ-
omy when the number of unemployed consumers rises, there is less consumer
spending.
6. Here is a chart showing both nominal GDP growth and real GDP growth fo
a country. Which of the following can be a true statement at the time the cha
was captured?: The country has deflation. The bottom line is nominal growth and
the top line is real growth.
7. Which of the following lines is the best leading economic indicator?: PMI
8. The "misery index" is often cited in the media as a way to measure
consumer pain. It is defined as the inflation rate plus the unemployment
rate ...... Argentina
9. What typically happens to nonfarm payrolls, the PMI indicator, and housin
starts at the onset of a recession in the United States?: Nonfarm payrolls go
down, the PMI indicator goes DOWN, the housing starts goes down.
10. Which of the following qualities of economic indicators do investors priz
the most?: Timeliness of release
11. Why is the release of GDP statistics less interesting to investors than the
release of other economic indicators?: Because GDP statistics are released
well after other economic indicators.
, BMC Exam Questions and Answers 2022
12. Which of the following important U.S. economic indicators is only avail-
able on a quarterly basis?: GDP
13. Which economic indicator is most directly linked to unemployment?: -
nonfarm payrolls
14. Here is the economic calendar for the UK for august 2013. Examine
indicators like PMI,......: Above expectations
15. This chart was captured in mid-2014. At that point in time, which of the
following terms. ..... Deceleration
16. How have economic forecasts for this county evolved?: Minimal Change
17. These charts show data for four countries as of early 2016. For each
country, the purple line ..... Russia
18. What is the main reason that investment banks create estimates of eco-
nomic indicators?: To know when specific economic data points are a positive o
negative surprise.
19. Which of the following is the biggest pitfall of economic indicators?: The
do not consistently presage turning points.
20. Here is a chart displaying estimates of the initial jobless claims indicator
one of the main unemployment. 260
21. Which country is the fourth biggest importer and exporter?: Japan
22. In 1994, the Mexican peso declined against the US dollar during so-called
"Tequila Crisis."....: Both countries had large dollar-denominated debts
23. Using the chart given, how many NZD can you buy with 100 AUD?: 107.8
24. Allison lives in America and has just retired. It is early 2016. Norway
25. Review the currency pair charts for the Barbadian dollar agains the
Jamaican dollar......: Hong Kong dollar against the Macanese pataca
26. Which of the following is not an example of a failed peg?: Hong Kong dolla
against the U.S. dollar in 1997.
27. Use the cart below to answer the question. How many Danish crown
(DKK) will buy 100 (JPY): 5.360
28. According to the Big Mac index screen, which of the following four
countries' currency is the most undervalued?: China
29. What generally happens when a central bank unexpectedly increases
interest rates?: The currency strengthens.
