BMC Answers (Bloomberg) 2019/2020
8NQZRLYVD3
The Primacy of GDP
Knowledge Check 1
• Inaccurately because the scope of GDP measurements can change.
Knowledge Check 2
• It went down.
Knowledge Check 3
• Sweden performed better.
Knowledge Check 4
• Consumer spending accounts for two-thirds of the U.S. economy. When the number of
unemployed consumers rises, there is less consumer spending.
SECTION QUIZ
1. 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?
a. The country has deflation. The bottom line is nominal growth and the top line is
real growth.
2. Which of the following lines is the best leading economic factor?
a. PMI
3. 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. Review and identify the
country with the highest “misery index.”
a. Argentina
4. What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the
onset of a recession in the United States?
a. Nonfarm payrolls go DOWN, the PMI indicator goes DOWN, the housing starts
goes DOWN.
Monitoring GDP
SECTION QUIZ
1. Which of the following qualities of economic indicators do investors prize the most?
a. Timeliness of release.
2. Why is the release of GDP statistics less interesting to investors than the release of other
economic indicators?
a. Because GDP statistics are released well after other economic indicators.
3. Which of the following important U.S. economic indicators is only available on a
quarterly basis?
a. GDP
4. Which economic indicator is most directly linked to unemployment?
a. Nonfarm payrolls.
Forecasting GDP
Knowledge Check 1
• Above Expectations
, Knowledge Check 2
• Deceleration
Knowledge Check 3
• Minimal Change
SECTION QUIZ
1. These charts show data for four countries as of early 2016. For each country, the purple
line denotes historic real GDP growth. The white line denotes the consensus estimated
real GDP growth. The red line denotes the most pessimistic analyst forecast. The green
line denotes the most optimistic analyst forecast. For which country is there the most
controversy among the analyst community about 2016 growth?
a. RUSSIA
2. What is the main reason that investment banks create estimates of economic
indicators?
a. To know when specific economic data points are a positive or negative surprise.
3. Which of the following is the biggest pitfall of economic indicators?
a. They do not consistently presage turning points.
4. Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment statistics in the U.S. It measures the number of new applicants for
unemployment benefits. What was the level of the analyst with the most optimistic
outlook?
a. 260
Currency Market Mechanics
Knowledge Check 1
• JAPAN
Knowledge Check 2
• Both countries had large dollar-denominated debts.
Knowledge Check 3
• 107.89
SECTION QUIZ
1. Allison lives in America and has just retired. It is early 2016. She has long had dreams of
cruising the fjords on the west coast of Norway, visiting Buckingham Palace in the
United Kingdom, seeing the cherry blossoms in Japan, and going to the top of the Eiffel
Tower in France. She last considered all four options on New Year’s Day 2008. She
would like to select the trip to go on based on which country’s currency has
subsequently weakened the most against the U.S. dollar. Where should she go on
vacation?
a. NORWAY
2. Review the currency pair charts for the Barbadian dollar against the Jamaican dollar, the
Czech koruna against the Polish zloty, the Nigerian naira against the Ghanaian cedi, and
the Hong Kong dollar against the Macanese pataca. Which pair is pegged.
a. The Hong Kong dollar against the Macanese pataca
3. Which of the following is NOT an example of a failed peg?
a. Hong Kong dollar against the U.S. dollar in 1997.
8NQZRLYVD3
The Primacy of GDP
Knowledge Check 1
• Inaccurately because the scope of GDP measurements can change.
Knowledge Check 2
• It went down.
Knowledge Check 3
• Sweden performed better.
Knowledge Check 4
• Consumer spending accounts for two-thirds of the U.S. economy. When the number of
unemployed consumers rises, there is less consumer spending.
SECTION QUIZ
1. 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?
a. The country has deflation. The bottom line is nominal growth and the top line is
real growth.
2. Which of the following lines is the best leading economic factor?
a. PMI
3. 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. Review and identify the
country with the highest “misery index.”
a. Argentina
4. What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the
onset of a recession in the United States?
a. Nonfarm payrolls go DOWN, the PMI indicator goes DOWN, the housing starts
goes DOWN.
Monitoring GDP
SECTION QUIZ
1. Which of the following qualities of economic indicators do investors prize the most?
a. Timeliness of release.
2. Why is the release of GDP statistics less interesting to investors than the release of other
economic indicators?
a. Because GDP statistics are released well after other economic indicators.
3. Which of the following important U.S. economic indicators is only available on a
quarterly basis?
a. GDP
4. Which economic indicator is most directly linked to unemployment?
a. Nonfarm payrolls.
Forecasting GDP
Knowledge Check 1
• Above Expectations
, Knowledge Check 2
• Deceleration
Knowledge Check 3
• Minimal Change
SECTION QUIZ
1. These charts show data for four countries as of early 2016. For each country, the purple
line denotes historic real GDP growth. The white line denotes the consensus estimated
real GDP growth. The red line denotes the most pessimistic analyst forecast. The green
line denotes the most optimistic analyst forecast. For which country is there the most
controversy among the analyst community about 2016 growth?
a. RUSSIA
2. What is the main reason that investment banks create estimates of economic
indicators?
a. To know when specific economic data points are a positive or negative surprise.
3. Which of the following is the biggest pitfall of economic indicators?
a. They do not consistently presage turning points.
4. Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment statistics in the U.S. It measures the number of new applicants for
unemployment benefits. What was the level of the analyst with the most optimistic
outlook?
a. 260
Currency Market Mechanics
Knowledge Check 1
• JAPAN
Knowledge Check 2
• Both countries had large dollar-denominated debts.
Knowledge Check 3
• 107.89
SECTION QUIZ
1. Allison lives in America and has just retired. It is early 2016. She has long had dreams of
cruising the fjords on the west coast of Norway, visiting Buckingham Palace in the
United Kingdom, seeing the cherry blossoms in Japan, and going to the top of the Eiffel
Tower in France. She last considered all four options on New Year’s Day 2008. She
would like to select the trip to go on based on which country’s currency has
subsequently weakened the most against the U.S. dollar. Where should she go on
vacation?
a. NORWAY
2. Review the currency pair charts for the Barbadian dollar against the Jamaican dollar, the
Czech koruna against the Polish zloty, the Nigerian naira against the Ghanaian cedi, and
the Hong Kong dollar against the Macanese pataca. Which pair is pegged.
a. The Hong Kong dollar against the Macanese pataca
3. Which of the following is NOT an example of a failed peg?
a. Hong Kong dollar against the U.S. dollar in 1997.
