BMC Exam Questions With Correct Answers
// // // // //
Which //driver //weakened //the //Swiss //franc? //(C) //- //verified //answer(s)-
✔✔a) //A //surprise //change //in //net //export //expectations
b)A //surprise //change //in //interest //rates //expectations
c)A //surprise //change //in //inflation //expectations
d)A //surprise //change //in //valuation //expectations
How //accurately //do //GDP //portray //the //economy //and //why? //- //verified //answer(s)-
✔✔Inaccurately //because //the //scope //of //GDP //measurements //can //change.
Consider //the //formula //GDP //= //C+I+G+(X-
M). //
A/
/country /
/is /
/undergoing //
a/
/boom /
/in /
/consumption /
/of /
/domestic /
/and //foreign //luxury //goods. //In //one //year, //the //dollar //growth //in //imports //is //greater //than //the
//dollar /
/growth /
/in //domestic //consumption. //Assuming //nothing //else //has //changed, //what //happened //to //GDP?
//- //verified //answer(s)-✔✔It //went //down
Here /
/is /
,/the /
/most /
/important //economic //data //for //Australia //and //Sweden. //which //economy //did //better //year-
over-
year /
/(YOY) /
/in /
/the /
/fourth /
/quarter /
/of /
/2013 /
/compared /
/to //the //fourth //quarter //of //2012? //Use //the //two //charts //to //investigate. //- //verified //answer(s)-
✔✔Sweden //performed //better
In /
/the /
/United /
/States, /
/why /
/is //there //a //strong //correlation //between //unemployment //and //GDP? //- //verified //answer(s)-
✔✔Consumer //spending //accounts //for //two-
thirds /
/of /
/the /
/U.S. /
/economy /
/when //the //number //of //unemployed //consumers //rises, //there //is //less //consumer //spending.
Here /
/is //
a/
/chart /
/showing /
/both /
,/nominal /
/GDP /
/growth /
/and /
/real /
/GDP /
/growth /
/for //
a/
/country. /
/Which //of //the //following //can //be //a //true //statement //at //the //time //the //chart //was //captured? //-
//verified //answer(s)-
✔✔The /
/country /
/has //deflation. //The //bottom //line //is //nominal //growth //and //the //top //line //is //real //growth.
Which /
/of //the //following //lines //is //the //best //leading //economic //indicator? //- //verified //answer(s)-
✔✔PMI
The //"misery /
/index" /
/is /
/often /
/cited /
/in /
/the /
/media /
/as //
a/
/way /
/to /
/measure /
/consumer /
/pain. /
, It //is //defined //as //the //inflation //rate //plus //the //unemployment //rate..... //- //verified //answer(s)-
/
✔✔Argentina
What /
/typically /
/happens /
/to /
/nonfarm /
/payrolls, /
/the /
/PMI /
/indicator, /
/and /
/housing //starts //at //the //onset //of //a //recession //in //the //United //States? //- //verified //answer(s)-
✔✔Nonfarm /
/payrolls //go //down, //the //PMI //indicator //goes //DOWN, //the //housing //starts //goes //down.
Which /
/of //the //following //qualities //of //economic //indicators //do //investors //prize //the //most? //- //verified
//answer(s)-✔✔Timeliness //of //release
Why /
/is /
/the /
/release /
/of /
/GDP /
/statistics /
/less /
/interesting /
/to //investors //than //the //release //of //other //economic //indicators? //- //verified //answer(s)-
✔✔Because //GDP //statistics //are //released //well //after //other //economic //indicators.
// // // // //
Which //driver //weakened //the //Swiss //franc? //(C) //- //verified //answer(s)-
✔✔a) //A //surprise //change //in //net //export //expectations
b)A //surprise //change //in //interest //rates //expectations
c)A //surprise //change //in //inflation //expectations
d)A //surprise //change //in //valuation //expectations
How //accurately //do //GDP //portray //the //economy //and //why? //- //verified //answer(s)-
✔✔Inaccurately //because //the //scope //of //GDP //measurements //can //change.
Consider //the //formula //GDP //= //C+I+G+(X-
M). //
A/
/country /
/is /
/undergoing //
a/
/boom /
/in /
/consumption /
/of /
/domestic /
/and //foreign //luxury //goods. //In //one //year, //the //dollar //growth //in //imports //is //greater //than //the
//dollar /
/growth /
/in //domestic //consumption. //Assuming //nothing //else //has //changed, //what //happened //to //GDP?
//- //verified //answer(s)-✔✔It //went //down
Here /
/is /
,/the /
/most /
/important //economic //data //for //Australia //and //Sweden. //which //economy //did //better //year-
over-
year /
/(YOY) /
/in /
/the /
/fourth /
/quarter /
/of /
/2013 /
/compared /
/to //the //fourth //quarter //of //2012? //Use //the //two //charts //to //investigate. //- //verified //answer(s)-
✔✔Sweden //performed //better
In /
/the /
/United /
/States, /
/why /
/is //there //a //strong //correlation //between //unemployment //and //GDP? //- //verified //answer(s)-
✔✔Consumer //spending //accounts //for //two-
thirds /
/of /
/the /
/U.S. /
/economy /
/when //the //number //of //unemployed //consumers //rises, //there //is //less //consumer //spending.
Here /
/is //
a/
/chart /
/showing /
/both /
,/nominal /
/GDP /
/growth /
/and /
/real /
/GDP /
/growth /
/for //
a/
/country. /
/Which //of //the //following //can //be //a //true //statement //at //the //time //the //chart //was //captured? //-
//verified //answer(s)-
✔✔The /
/country /
/has //deflation. //The //bottom //line //is //nominal //growth //and //the //top //line //is //real //growth.
Which /
/of //the //following //lines //is //the //best //leading //economic //indicator? //- //verified //answer(s)-
✔✔PMI
The //"misery /
/index" /
/is /
/often /
/cited /
/in /
/the /
/media /
/as //
a/
/way /
/to /
/measure /
/consumer /
/pain. /
, It //is //defined //as //the //inflation //rate //plus //the //unemployment //rate..... //- //verified //answer(s)-
/
✔✔Argentina
What /
/typically /
/happens /
/to /
/nonfarm /
/payrolls, /
/the /
/PMI /
/indicator, /
/and /
/housing //starts //at //the //onset //of //a //recession //in //the //United //States? //- //verified //answer(s)-
✔✔Nonfarm /
/payrolls //go //down, //the //PMI //indicator //goes //DOWN, //the //housing //starts //goes //down.
Which /
/of //the //following //qualities //of //economic //indicators //do //investors //prize //the //most? //- //verified
//answer(s)-✔✔Timeliness //of //release
Why /
/is /
/the /
/release /
/of /
/GDP /
/statistics /
/less /
/interesting /
/to //investors //than //the //release //of //other //economic //indicators? //- //verified //answer(s)-
✔✔Because //GDP //statistics //are //released //well //after //other //economic //indicators.
