BMC FINAL PAPER 2025/2026 QUESTIONS AND
SOLUTIONS MARKED A+
✔✔What is the median estimate for the number of Japanese yen per euro for Calendar
year 2020? (D) - ✔✔a)115
b)163
c)132
d)126
✔✔What is the primary goal of Abenomics? (B) - ✔✔a)To strengthen the yen to foster
consumption of luxury goods
b)To halt the vicious cycle of deflation
c)To reduce inflation by increasing unemployment
d)To reign in GDP by reducing business confidence
✔✔Here is the vicious deflationary cycle. What step connects the lower left gray arrow
to the upper right blue arrow? (B) - ✔✔a)Workers demand pay increases
b)Prices decline
c)Employment declines
d)Workers expect prices to increase
✔✔Were the two oil crises in the 1970s linked to deflation or inflation? (C) -
✔✔a)Deflation
b)Both deflation and inflation
c)Inflation
d)Neither deflation nor inflation
✔✔On June 23, 2016, the United Kingdom voted to leave the European Union...... (D) -
✔✔a)They are probably heavy importers
b)Their CEOs probably voted to leave the EU
c)Their CEOs probably voted to remaining the EU
d)They are probably heavy exporters
✔✔In the early 2016, the same Germany machinery company has interest from four
prospective clients from emerging markets: Indonesia, Brazil, Russia, and South
Africa..... (C) - ✔✔a)South Africa
b)Russia
c)Indonesia
d)Brazil
✔✔What is the difference between Nomura and RBC's estimate for the Japanese
yen/euro currency pair for the end of Q1 2018? (D) - ✔✔a)40 percent
b)40 dollars
c)40 euros
, d)40 yen
✔✔Imagine you are a Dutch diamond dealer who sources diamonds from South
Africa...... (A) - ✔✔a) EUR 4,717 more
b) EUR 4,717 fewer
c) ZAR 4,717 more
d) ZAR 4,717 fewer
✔✔Why would Jack Welch suggest putting all company plants on barges? (A) - ✔✔a)To
respond quickly to changes in the currency markets
b) To avoid using any domestic currencies
c) To locate the cost base in the most favorable tax regimes
d) To purchase materials for the plant more quickly
✔✔Samsung is based in South Korea and reports in South Korean won.... (A) - ✔✔a)
Dollar
b) Euro
c) Real
d) Yuan
✔✔Legendary investor Warren Buffett said, "Gold gets dug out of the ground..... Then
we melt it down, dig another hole, bury it again and pay people to stand around
guarding it. It has no utility. Anyone watching from Mars would be scratching their
head." Based on this quotation, what quality of gold is he referring to? (A) - ✔✔a) Its
storage costs
b) Its durability
c) Its Scarcity
d) Its physical attractiveness
✔✔Which of the following options is the best way for investors to manage currency risk?
(D) - ✔✔a)By investing purely in ver large stocks in their home market
b)By investing in pegged currencies
c)By vacationing each year in a country with a weak currency
d)By locking in forward rates for known foreign payments
✔✔What do the green bars at the bottom signify? (B) - ✔✔a) High revenue
b) Surplus
c) Growth
d) Deficit
✔✔According to the table, who owns approximately 1.3% of actively trades US debt?
(D) - ✔✔a) Canada
b) Russia
c) India
d) Taiwan
SOLUTIONS MARKED A+
✔✔What is the median estimate for the number of Japanese yen per euro for Calendar
year 2020? (D) - ✔✔a)115
b)163
c)132
d)126
✔✔What is the primary goal of Abenomics? (B) - ✔✔a)To strengthen the yen to foster
consumption of luxury goods
b)To halt the vicious cycle of deflation
c)To reduce inflation by increasing unemployment
d)To reign in GDP by reducing business confidence
✔✔Here is the vicious deflationary cycle. What step connects the lower left gray arrow
to the upper right blue arrow? (B) - ✔✔a)Workers demand pay increases
b)Prices decline
c)Employment declines
d)Workers expect prices to increase
✔✔Were the two oil crises in the 1970s linked to deflation or inflation? (C) -
✔✔a)Deflation
b)Both deflation and inflation
c)Inflation
d)Neither deflation nor inflation
✔✔On June 23, 2016, the United Kingdom voted to leave the European Union...... (D) -
✔✔a)They are probably heavy importers
b)Their CEOs probably voted to leave the EU
c)Their CEOs probably voted to remaining the EU
d)They are probably heavy exporters
✔✔In the early 2016, the same Germany machinery company has interest from four
prospective clients from emerging markets: Indonesia, Brazil, Russia, and South
Africa..... (C) - ✔✔a)South Africa
b)Russia
c)Indonesia
d)Brazil
✔✔What is the difference between Nomura and RBC's estimate for the Japanese
yen/euro currency pair for the end of Q1 2018? (D) - ✔✔a)40 percent
b)40 dollars
c)40 euros
, d)40 yen
✔✔Imagine you are a Dutch diamond dealer who sources diamonds from South
Africa...... (A) - ✔✔a) EUR 4,717 more
b) EUR 4,717 fewer
c) ZAR 4,717 more
d) ZAR 4,717 fewer
✔✔Why would Jack Welch suggest putting all company plants on barges? (A) - ✔✔a)To
respond quickly to changes in the currency markets
b) To avoid using any domestic currencies
c) To locate the cost base in the most favorable tax regimes
d) To purchase materials for the plant more quickly
✔✔Samsung is based in South Korea and reports in South Korean won.... (A) - ✔✔a)
Dollar
b) Euro
c) Real
d) Yuan
✔✔Legendary investor Warren Buffett said, "Gold gets dug out of the ground..... Then
we melt it down, dig another hole, bury it again and pay people to stand around
guarding it. It has no utility. Anyone watching from Mars would be scratching their
head." Based on this quotation, what quality of gold is he referring to? (A) - ✔✔a) Its
storage costs
b) Its durability
c) Its Scarcity
d) Its physical attractiveness
✔✔Which of the following options is the best way for investors to manage currency risk?
(D) - ✔✔a)By investing purely in ver large stocks in their home market
b)By investing in pegged currencies
c)By vacationing each year in a country with a weak currency
d)By locking in forward rates for known foreign payments
✔✔What do the green bars at the bottom signify? (B) - ✔✔a) High revenue
b) Surplus
c) Growth
d) Deficit
✔✔According to the table, who owns approximately 1.3% of actively trades US debt?
(D) - ✔✔a) Canada
b) Russia
c) India
d) Taiwan
