BLOOMBERG MARKET CONCEPTS EXAM REVIEW SOLVED QUESTIONS AND ANSWERS SOLUTION UPDATE

BLOOMBERG MARKET CONCEPTS EXAM REVIEW SOLVED QUESTIONS AND ANSWERS SOLUTION UPDATE "New news" moves markets. Accordingly, the economic indicators that heralds "new news" are of the most value to traders and investors. 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. Nonfarm payrolls, CPI and PMI are published monthly. GDP is only published on a quarterly basis. Which economic indicator is most directly linked to unemployment? What is the main reason that investment banks create estimates of economic indicators? Which of the following is the biggest pitfall of economic indicators? 1. they do not take into account seasonality 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 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? What are 3 examples of failed pegs? What is an example of a failed peg? Currency market mechanics summary: What generally happens when a central bank unexpectedly increases interest rates? What driver weakened the Swiss frank? What does the Big Mac index show? What are 3 main short-term drivers of currency valuation?