BLOOMBERG MARKET CONCEPTS 2025
QUESTIONS AND ANSWERS.
What does the Big Mac index show? - Correct answer-how currencies may be
undervalues or overvalued
GDP statistics are typically released by the government a month or more after the
period in question, by which point dozens of other indicators have been released. -
Correct answer-Because GDP statistics are released well after other economic
indicators
What are 3 main short-term drivers of currency valuation? - Correct answer-
surprise changes in interest rates, inflation, and trade
By what mechanism so interest rates affect currency value? - Correct answer-
Global investors are attracted by higher bond yields in high interest rate countries
Which headlines could move a currency pair? - Correct answer-US Stocks Rally of
Fed's Surprise Reduction of Interest Rate
"New news" moves markets. Accordingly, the economic indicators that heralds
"new news" are of the most value to traders and investors. - Correct answer-
timeliness of release
Nonfarm payrolls, CPI and PMI are published monthly. GDP is only published on
a quarterly basis. - Correct answer-GDP