BMC EXAM 2025 QUESTIONS WITH CORRECT ANSWERS

BMC EXAM 2025 QUESTIONS WITH
CORRECT ANSWERS
Which |driver |weakened |the |Swiss |franc? |(C) |- |VERIFIED |ANSWER✔✔-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



How |accurately |do |GDP |portray |the |economy |and |why? |- |VERIFIED |ANSWER✔✔-Inaccurately |because
|the |scope |of |GDP |measurements |can |change.




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?
|- |VERIFIED |ANSWER✔✔-It |went |down




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. |- |VERIFIED |ANSWER✔✔-Sweden |performed |better



In |the |United |States, |why |is |there |a |strong |correlation |between |unemployment |and |GDP? |- |VERIFIED |
ANSWER✔✔-Consumer |spending |accounts |for |two-thirds |of |the |U.S. |economy |when |the |number |of |
unemployed |consumers |rises, |there |is |less |consumer |spending.



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? |- |VERIFIED |ANSWER✔✔-The |
country |has |deflation. |The |bottom |line |is |nominal |growth |and |the |top |line |is |real |growth.



Which |of |the |following |lines |is |the |best |leading |economic |indicator? |- |VERIFIED |ANSWER✔✔-PMI



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..... |- |VERIFIED |ANSWER✔✔-Argentina

,What |typically |happens |to |nonfarm |payrolls, |the |PMI |indicator, |and |housing |starts |at |the |onset |of |a |
recession |in |the |United |States? |- |VERIFIED |ANSWER✔✔-Nonfarm |payrolls |go |down, |the |PMI |indicator
|goes |DOWN, |the |housing |starts |goes |down.




Which |of |the |following |qualities |of |economic |indicators |do |investors |prize |the |most? |- |VERIFIED |
ANSWER✔✔-Timeliness |of |release



Why |is |the |release |of |GDP |statistics |less |interesting |to |investors |than |the |release |of |other |economic |
indicators? |- |VERIFIED |ANSWER✔✔-Because |GDP |statistics |are |released |well |after |other |economic |
indicators.



Which |of |the |following |important |U.S. |economic |indicators |is |only |available |on |a |quarterly |basis? |- |
VERIFIED |ANSWER✔✔-GDP



Which |economic |indicator |is |most |directly |linked |to |unemployment? |- |VERIFIED |ANSWER✔✔-nonfarm
|payrolls




Here |is |the |economic |calendar |for |the |UK |for |august |2013. |Examine |indicators |like |PMI,...... |- |
VERIFIED |ANSWER✔✔-Above |expectations



This |chart |was |captured |in |mid-2014. |At |that |point |in |time, |which |of |the |following |terms..... |- |
VERIFIED |ANSWER✔✔-Deceleration



How |have |economic |forecasts |for |this |county |evolved? |- |VERIFIED |ANSWER✔✔-Minimal |Change



These |charts |show |data |for |four |countries |as |of |early |2016. |For |each |country, |the |purple |line.... |- |
VERIFIED |ANSWER✔✔-Russia



What |is |the |main |reason |that |investment |banks |create |estimates |of |economic |indicators? |- |VERIFIED |
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? |- |VERIFIED |ANSWER✔✔-They |do |
not |consistently |presage |turning |points.



Here |is |a |chart |displaying |estimates |of |the |initial |jobless |claims |indicator, |one |of |the |main |
unemployment.... |- |VERIFIED |ANSWER✔✔-260



Which |country |is |the |fourth |biggest |importer |and |exporter? |- |VERIFIED |ANSWER✔✔-Japan



In |1994, |the |Mexican |peso |declined |against |the |US |dollar |during |so-called |"Tequila |Crisis.".... |- |
VERIFIED |ANSWER✔✔-Both |countries |had |large |dollar-denominated |debts



Using |the |chart |given, |how |many |NZD |can |you |buy |with |100 |AUD? |- |VERIFIED |ANSWER✔✔-107.89



Allison |lives |in |America |and |has |just |retired. |It |is |early |2016..... |- |VERIFIED |ANSWER✔✔-Norway



Review |the |currency |pair |charts |for |the |Barbadian |dollar |agains |the |Jamaican |dollar...... |- |VERIFIED |
ANSWER✔✔-Hong |Kong |dollar |against |the |Macanese |pataca



Which |of |the |following |is |not |an |example |of |a |failed |peg? |- |VERIFIED |ANSWER✔✔-Hong |Kong |dollar |
against |the |U.S. |dollar |in |1997.



Use |the |cart |below |to |answer |the |question. |How |many |Danish |crown |(DKK) |will |buy |100 |(JPY) |- |
VERIFIED |ANSWER✔✔-5.360



According |to |the |Big |Mac |index |screen, |which |of |the |following |four |countries' |currency |is |the |most |
undervalued? |- |VERIFIED |ANSWER✔✔-China



What |generally |happens |when |a |central |bank |unexpectedly |increases |interest |rates? |- |VERIFIED |
ANSWER✔✔-The |currency |strengthens.



Which |driver |weakened |the |Swiss |franc? |- |VERIFIED |ANSWER✔✔-A |surprise |change |in |inflation |
expectations