BLOOMBERG MARKETS CONCEPTS (BMC)
ACTUAL EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS
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Terms in this set (91)
,gross domestic product (GDP) market value of all final goods and services
produced within a country
GDP = C + I + G + (X-M)
C= personal consumption
I = private investment
G = government spending
X = exports
M = imports
(C = 2/3 of US GDP)
provides backdrop for investing bc is a measure of
all economic activity
"actual GDP growth has entirely lost its capacity to
surprise... leading indicators... PMI garners
disproportionate attention"
nominal GDP vs real GDP nominal GDP = $ amount of GDP
real GDP growth = nominal GDP growth - inflation
(isolates increases in production and/or increases in
prices of goods&services)
recession 2 successive quarters of negative real GDP growth
inflation general increase in prices of goods&services which
diminishes the purchasing power of money
(a unit of money tomorrow would buy less than the
same unit of money today)
, primary sources of inflation data 1) personal consumption expenditures (PCE)
^^ measure of price changes in consumer goods
and services
^^ shows what consumers are spending their
income on
2) consumer price index (CPI)
^^ based on a representative basket of
goods&services
^^ difficulties w/ being truly representative bc times,
interests, & tech change
^^ CPI basket is updated @ start of ea yr to reflect
previous yr
unemployment consumer spending is almost purely driven by
salaries
^^ economy tends to shrink when more people lose
their jobs (depresses GDP growth)
1) nonfarm payrolls
^^ most important unemployment indicator
^^ measures monthly change in # of US employees
business confidence businesses make large investments and hire people
when they feel confident there will be additional
demand for their goods&services
1) purchasing managers index (PMI)
^^ index of US manufacturing activity
^^ surveys people in charge of buying goods and
services for corporations
^^ above 50 = optimism, below 50 = pessimism
housing 1) housing starts
^^ before construction begins, must be confident
that future home buyers can assume 30 yr
mortgages
^^ after buying a new house, consumer also
purchases appliances, interior decorations, etc
ACTUAL EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (91)
,gross domestic product (GDP) market value of all final goods and services
produced within a country
GDP = C + I + G + (X-M)
C= personal consumption
I = private investment
G = government spending
X = exports
M = imports
(C = 2/3 of US GDP)
provides backdrop for investing bc is a measure of
all economic activity
"actual GDP growth has entirely lost its capacity to
surprise... leading indicators... PMI garners
disproportionate attention"
nominal GDP vs real GDP nominal GDP = $ amount of GDP
real GDP growth = nominal GDP growth - inflation
(isolates increases in production and/or increases in
prices of goods&services)
recession 2 successive quarters of negative real GDP growth
inflation general increase in prices of goods&services which
diminishes the purchasing power of money
(a unit of money tomorrow would buy less than the
same unit of money today)
, primary sources of inflation data 1) personal consumption expenditures (PCE)
^^ measure of price changes in consumer goods
and services
^^ shows what consumers are spending their
income on
2) consumer price index (CPI)
^^ based on a representative basket of
goods&services
^^ difficulties w/ being truly representative bc times,
interests, & tech change
^^ CPI basket is updated @ start of ea yr to reflect
previous yr
unemployment consumer spending is almost purely driven by
salaries
^^ economy tends to shrink when more people lose
their jobs (depresses GDP growth)
1) nonfarm payrolls
^^ most important unemployment indicator
^^ measures monthly change in # of US employees
business confidence businesses make large investments and hire people
when they feel confident there will be additional
demand for their goods&services
1) purchasing managers index (PMI)
^^ index of US manufacturing activity
^^ surveys people in charge of buying goods and
services for corporations
^^ above 50 = optimism, below 50 = pessimism
housing 1) housing starts
^^ before construction begins, must be confident
that future home buyers can assume 30 yr
mortgages
^^ after buying a new house, consumer also
purchases appliances, interior decorations, etc
