Bloomberg Market Concepts Exam (Latest
Update ) Questions and
Answers {Grade A } 100% Correct
"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
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
Nonfarm payrolls, CPI and PMI are published monthly. GDP is only published on a
quarterly basis. - correct answer GDP
Which economic indicator is most directly linked to unemployment? - correct answer
nonfarm payrolls
What is the main reason that investment banks create estimates of economic
indicators? - correct answer to know when specific economic data points are a
positive or negative surprise
Which of the following is the biggest pitfall of economic indicators?
1. they do not take into account seasonality
, Bloomberg Market Concepts Exam (Latest
Update ) Questions and
Answers {Grade A } 100% Correct
2, they are not sufficiently timely to make investment decisions
3. they only serve as proxys for economic activity
4. they do not consistently presage turning points - correct answer they do not
consistently presage turning points
In 1994, the Mexican peso declined against the US dollar by 37% during the so-called
Tequila Crisis. What exacerbating factor did Mexico's Tequila Crisis have in common
with the Argentine crisis of 2002? - correct answer both countries had large dollar-
denominated debts
What are 3 examples of failed pegs? - correct answer 1. British sterling against the
Deutsch mark in 1992
2. Mexican peso against the US dollar in 1994
3. Argentine peso against the US dollar in 2002
What is an example of a failed peg? - correct answer Hong Kong dollar aginst the US
dollar in 1997
Currency market mechanics summary: - correct answer -the US dollar equivilent of 5T
of currencies are traded every day
-1971 marked the dawn of the modern currency market
-several contries peg their currencies to other currencies
Update ) Questions and
Answers {Grade A } 100% Correct
"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
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
Nonfarm payrolls, CPI and PMI are published monthly. GDP is only published on a
quarterly basis. - correct answer GDP
Which economic indicator is most directly linked to unemployment? - correct answer
nonfarm payrolls
What is the main reason that investment banks create estimates of economic
indicators? - correct answer to know when specific economic data points are a
positive or negative surprise
Which of the following is the biggest pitfall of economic indicators?
1. they do not take into account seasonality
, Bloomberg Market Concepts Exam (Latest
Update ) Questions and
Answers {Grade A } 100% Correct
2, they are not sufficiently timely to make investment decisions
3. they only serve as proxys for economic activity
4. they do not consistently presage turning points - correct answer they do not
consistently presage turning points
In 1994, the Mexican peso declined against the US dollar by 37% during the so-called
Tequila Crisis. What exacerbating factor did Mexico's Tequila Crisis have in common
with the Argentine crisis of 2002? - correct answer both countries had large dollar-
denominated debts
What are 3 examples of failed pegs? - correct answer 1. British sterling against the
Deutsch mark in 1992
2. Mexican peso against the US dollar in 1994
3. Argentine peso against the US dollar in 2002
What is an example of a failed peg? - correct answer Hong Kong dollar aginst the US
dollar in 1997
Currency market mechanics summary: - correct answer -the US dollar equivilent of 5T
of currencies are traded every day
-1971 marked the dawn of the modern currency market
-several contries peg their currencies to other currencies
