Bloomberg Market Concepts Exam (Latest Update 2026 / 2027) Questions and Answers | Grade A | 100% Correct

Bloomberg Market Concepts Exam
(Latest Update )
Questions and Answers | Grade A |
100% Correct


Question:
Investors tend to pay attention to 3 metrics to keep tabs on a government's
credit worthiness. All 3 have the power to make investors demand higher
yields in government bond auctions. Often, a government debt crisis will
involve more than 1 of these factors
Answer:
1. Government Debt as a proportion of GDP (Debt/GDP)
2. Budget Deficit as a proportion of GDP (Deficit/GDP)
3. Aggressiveness of the repayment schedule




Question:
Investment Grade Corporate Bonds have a rating of
Answer:
BBB- or above

,Question:
Non-investment grade (aka High-Yield, Junk , Speculative) Corporate Bonds
have a rating of
Answer:
BB+ or below




Question:
Two Credit Risk Indicators investors commonly Use to see trouble brewing
Answer:
1. Credit Ratings


2. Credit Default Swaps




Question:
Credit Default Swap spreads reflect
Answer:
the intrinsic probability of default

,Question:
Credit rating agencies are able to categorize countries and companies into risk
categories, from which they have data on
Answer:
what percentage in the category will default on their loans




Question:
Bond yields are the inverse of
Answer:
bond prices




Question:
As inflation rises, bond prices
Answer:
go down and bond yields go up.




Question:
How is Inflation Measured
Answer:
Inflation readings and Output Gap

, Question:
Output Gap is
Answer:
the measure of the slackness or tightness in the economy




Question:
Top 3 inflation statistics read by the Central Bank
Answer:
GDP deflator
CPI statistic
Core Personal Consumer Expenditure




Question:
The difference in price between regular bonds and Treasury Inflation
Protected Securities (TIPS) are used to understand
Answer:
expected future inflation