Bloomberg Concept Questions
Which of the following qualities of economic indicators do investors prize the most? -
ANStimeliness of release
Why is the release of GDP statistics less interesting to investors than the release of other
economic indicators? - ANSbecause GPD statistics are released well after other economic
indicators
Which of the following important US economic indicators is only available on a quarterly basis? -
ANSGDP
Which economic indicator is most directly linked to unemployment? - ANSnonfarm payrolls
How accurately do GDP statistics portray the economy and why? - ANSinaccurately because
the scope of GDP measurements can change
Which of the following lines is the best leading economic indicator? - ANSPMI
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of
a recession in the United States? - ANSNonfarm payrolls go down, the PMI indicator goes
DOWN, the housing starts goes down.
How have economic forecasts for this country (US) evolved? - ANSminimal change
What is the main reason that investment banks create estimates of economic indicators? -
ANSTo know when specific economic data points are a positive or negative surprise
Which of the following is the biggest pitfall of economic indicators? - ANSThey do not
consistently presage turning points
Which country is the fourth biggest importer and exporter? - ANSJapan
Which of the following is not an example of a failed peg? - ANSHong Kong dollar against the
U.S. dollar in 1997.
What generally happens when a central bank unexpectedly increases interest rates? - ANSThe
currency strengthens.
Which driver weakened the Swiss franc? - ANSA surprise change in inflation expectations
What does the Big Mac index show? - ANShow currencies may be overvalued or undervalued
, Which of the following are short-term drivers of currency valuation? - ANSsurprise changes in
interest rates, inflation, and trade
By what mechanism do interest rates affect currency values? - ANSGlobal investors are
attracted by higher bond yields in high interest rate countries.
Which of these headlines could move a currency pair? - ANSU.S. Stocks rally on Fed's Surprise
reduction of Interest Rate.
What is the most common target inflation rate for an advanced economy? - ANS2%
What was the primary goal of Abenomics? - ANSto halt the vicious cycle of deflation
Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper
right blue arrow? - ANSprices decline
Were the two oil crises in the 1970s linked to deflation or inflation? - ANSinflation
What is the median estimate for the number of Japanese yen per euro for calendar year 2020? -
ANS126
What is the difference between Norma and RBC's estimate for the Japanese yen/euro currency
pair for the end of Q1 2018? - ANS40 yen
Why would Jack Welch suggest putting all company plants on barges? - ANSTo respond quickly
to changes in the currency markets.
Which of the following options is the best way for investors to manage currency risk? - ANSBy
locking in forward rates for known foreign payments.
What quality of U.S. government bonds causes investors to buy them when market volatility
rises? - ANSUS Government bonds are considered low risk
Why is fixed income called Fixed income? - ANSBecause the repayment amounts and timings
are fixed for ordinary bonds
Why does the United States have a strong reputation for creditworthiness? - ANSbecause it has
the right to tax the wealthiest population on earth.
What is one reason why foreign governments lend to the U.S. government? - ANSTo build liquid
FX reserves
What does one yellow bar depict in this debt distribution diagram? - ANSCoupon repayment
Which of the following qualities of economic indicators do investors prize the most? -
ANStimeliness of release
Why is the release of GDP statistics less interesting to investors than the release of other
economic indicators? - ANSbecause GPD statistics are released well after other economic
indicators
Which of the following important US economic indicators is only available on a quarterly basis? -
ANSGDP
Which economic indicator is most directly linked to unemployment? - ANSnonfarm payrolls
How accurately do GDP statistics portray the economy and why? - ANSinaccurately because
the scope of GDP measurements can change
Which of the following lines is the best leading economic indicator? - ANSPMI
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of
a recession in the United States? - ANSNonfarm payrolls go down, the PMI indicator goes
DOWN, the housing starts goes down.
How have economic forecasts for this country (US) evolved? - ANSminimal change
What is the main reason that investment banks create estimates of economic indicators? -
ANSTo know when specific economic data points are a positive or negative surprise
Which of the following is the biggest pitfall of economic indicators? - ANSThey do not
consistently presage turning points
Which country is the fourth biggest importer and exporter? - ANSJapan
Which of the following is not an example of a failed peg? - ANSHong Kong dollar against the
U.S. dollar in 1997.
What generally happens when a central bank unexpectedly increases interest rates? - ANSThe
currency strengthens.
Which driver weakened the Swiss franc? - ANSA surprise change in inflation expectations
What does the Big Mac index show? - ANShow currencies may be overvalued or undervalued
, Which of the following are short-term drivers of currency valuation? - ANSsurprise changes in
interest rates, inflation, and trade
By what mechanism do interest rates affect currency values? - ANSGlobal investors are
attracted by higher bond yields in high interest rate countries.
Which of these headlines could move a currency pair? - ANSU.S. Stocks rally on Fed's Surprise
reduction of Interest Rate.
What is the most common target inflation rate for an advanced economy? - ANS2%
What was the primary goal of Abenomics? - ANSto halt the vicious cycle of deflation
Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper
right blue arrow? - ANSprices decline
Were the two oil crises in the 1970s linked to deflation or inflation? - ANSinflation
What is the median estimate for the number of Japanese yen per euro for calendar year 2020? -
ANS126
What is the difference between Norma and RBC's estimate for the Japanese yen/euro currency
pair for the end of Q1 2018? - ANS40 yen
Why would Jack Welch suggest putting all company plants on barges? - ANSTo respond quickly
to changes in the currency markets.
Which of the following options is the best way for investors to manage currency risk? - ANSBy
locking in forward rates for known foreign payments.
What quality of U.S. government bonds causes investors to buy them when market volatility
rises? - ANSUS Government bonds are considered low risk
Why is fixed income called Fixed income? - ANSBecause the repayment amounts and timings
are fixed for ordinary bonds
Why does the United States have a strong reputation for creditworthiness? - ANSbecause it has
the right to tax the wealthiest population on earth.
What is one reason why foreign governments lend to the U.S. government? - ANSTo build liquid
FX reserves
What does one yellow bar depict in this debt distribution diagram? - ANSCoupon repayment
