BMC EXAM SCRIPT 2025/2026 QUESTIONS AND
SOLUTIONS MARKED A+
✔✔What is the main reason that investment banks create estimates of economic
indicators? - ✔✔To know when specific economic data points are a positive or negative
surprise.
✔✔Which of the following is the biggest pitfall of economic indicators? - ✔✔They do not
consistently presage turning points.
✔✔Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment.... - ✔✔260
✔✔Which country is the fourth biggest importer and exporter? - ✔✔Japan
✔✔In 1994, the Mexican peso declined against the US dollar during so-called "Tequila
Crisis.".... - ✔✔Both countries had large dollar-denominated debts
✔✔Using the chart given, how many NZD can you buy with 100 AUD? - ✔✔107.89
✔✔Allison lives in America and has just retired. It is early 2016..... - ✔✔Norway
✔✔Review the currency pair charts for the Barbadian dollar agains the Jamaican
dollar...... - ✔✔Hong Kong dollar against the Macanese pataca
✔✔Which of the following is not an example of a failed peg? - ✔✔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) - ✔✔5.360
✔✔According to the Big Mac index screen, which of the following four countries'
currency is the most undervalued? - ✔✔China
✔✔What generally happens when a central bank unexpectedly increases interest rates?
- ✔✔The currency strengthens.
✔✔Which driver weakened the Swiss franc? - ✔✔A surprise change in inflation
expectations
✔✔What does the Big Mac index show? - ✔✔How currencies may be overvalued or
undervalued.
, ✔✔Which of the following are short-term drivers of currency valuation? - ✔✔Surprise
changes in interest rates, inflation, and trade
✔✔By what mechanism do interest rates affect currency values? - ✔✔Global investors
are attracted by higher bond yields in high interest rate countries.
✔✔Which of these headlines could move a currency pair? - ✔✔U.S. Stocks rally on
Fed's Surprise reduction of Interest Rate.
✔✔What is the most common target inflation rate for an advanced economy? - ✔✔2%
✔✔What was the primary goal of Abenomics? - ✔✔To 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? - ✔✔prices decline
✔✔Were the two oil crises in the 1970s linked to deflation or inflation? - ✔✔Inflation
✔✔on June 23. 2016, the UK voted to leave the EU..... - ✔✔They are probably heavy
exporters
✔✔In early 2016, the same Germany machinery company has interest from four
prospective clients..... - ✔✔Indonesia
✔✔What is the median estimate for the number of Japanese yen per euro for calendar
year 2020? - ✔✔126
✔✔What is the difference between Norma and RBC's estimate for the Japanese
yen/euro... - ✔✔40 yen
✔✔Imagine you are a Dutch diamond dealer who sources diamonds from south africa -
✔✔EUR 4,717 more
✔✔Why would Jack Welch suggest putting all company plants on barges? - ✔✔To
respond quickly to changes in the currency markets.
✔✔Samsung is based in South Korea and reports in South Korean won.... - ✔✔Dollar
✔✔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? - ✔✔Its storage
costs
SOLUTIONS MARKED A+
✔✔What is the main reason that investment banks create estimates of economic
indicators? - ✔✔To know when specific economic data points are a positive or negative
surprise.
✔✔Which of the following is the biggest pitfall of economic indicators? - ✔✔They do not
consistently presage turning points.
✔✔Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment.... - ✔✔260
✔✔Which country is the fourth biggest importer and exporter? - ✔✔Japan
✔✔In 1994, the Mexican peso declined against the US dollar during so-called "Tequila
Crisis.".... - ✔✔Both countries had large dollar-denominated debts
✔✔Using the chart given, how many NZD can you buy with 100 AUD? - ✔✔107.89
✔✔Allison lives in America and has just retired. It is early 2016..... - ✔✔Norway
✔✔Review the currency pair charts for the Barbadian dollar agains the Jamaican
dollar...... - ✔✔Hong Kong dollar against the Macanese pataca
✔✔Which of the following is not an example of a failed peg? - ✔✔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) - ✔✔5.360
✔✔According to the Big Mac index screen, which of the following four countries'
currency is the most undervalued? - ✔✔China
✔✔What generally happens when a central bank unexpectedly increases interest rates?
- ✔✔The currency strengthens.
✔✔Which driver weakened the Swiss franc? - ✔✔A surprise change in inflation
expectations
✔✔What does the Big Mac index show? - ✔✔How currencies may be overvalued or
undervalued.
, ✔✔Which of the following are short-term drivers of currency valuation? - ✔✔Surprise
changes in interest rates, inflation, and trade
✔✔By what mechanism do interest rates affect currency values? - ✔✔Global investors
are attracted by higher bond yields in high interest rate countries.
✔✔Which of these headlines could move a currency pair? - ✔✔U.S. Stocks rally on
Fed's Surprise reduction of Interest Rate.
✔✔What is the most common target inflation rate for an advanced economy? - ✔✔2%
✔✔What was the primary goal of Abenomics? - ✔✔To 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? - ✔✔prices decline
✔✔Were the two oil crises in the 1970s linked to deflation or inflation? - ✔✔Inflation
✔✔on June 23. 2016, the UK voted to leave the EU..... - ✔✔They are probably heavy
exporters
✔✔In early 2016, the same Germany machinery company has interest from four
prospective clients..... - ✔✔Indonesia
✔✔What is the median estimate for the number of Japanese yen per euro for calendar
year 2020? - ✔✔126
✔✔What is the difference between Norma and RBC's estimate for the Japanese
yen/euro... - ✔✔40 yen
✔✔Imagine you are a Dutch diamond dealer who sources diamonds from south africa -
✔✔EUR 4,717 more
✔✔Why would Jack Welch suggest putting all company plants on barges? - ✔✔To
respond quickly to changes in the currency markets.
✔✔Samsung is based in South Korea and reports in South Korean won.... - ✔✔Dollar
✔✔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? - ✔✔Its storage
costs
