bloomberg
Inaccurately because the scope of GDP measurements can change. - ANSHow accurately do
GDP portray the economy and why?
It went down - ANSConsider 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?
C= Consumer spending
I = Investment (Gross Fixed Capital Formation)
G= Government Spending
X= Exports
M= Imports - ANSwhat is the meaning of each letter in the GDP formula, C+I+G+(X-M).
Sweden performed better - ANSHere 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.
Consumer spending accounts for two-thirds of the U.S. economy when the number of
unemployed consumers rises, there is less consumer spending. - ANSIn the United States, why
is there a strong correlation between unemployment and GDP?
The country has deflation. The bottom line is nominal growth and the top line is real growth. -
ANSHere 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?
PMI - ANSWhich of the following lines is the best leading economic indicator?
Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down. -
ANSWhat typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the
onset of a recession in the United States?
Timeliness of release - ANSWhich of the following qualities of economic indicators do investors
prize the most?
Because GDP statistics are released well after other economic indicators. - ANSWhy is the
release of GDP statistics less interesting to investors than the release of other economic
indicators?
, GDP - ANSWhich of the following important U.S. economic indicators is only available on a
quarterly basis?
nonfarm payrolls - ANSWhich economic indicator is most directly linked to unemployment?
To know when specific economic data points are a positive or negative surprise. - ANSWhat is
the main reason that investment banks create estimates of economic indicators?
They do not consistently presage turning points. - ANSWhich of the following is the biggest
pitfall of economic indicators?
Japan - ANSWhich country is the fourth biggest importer and exporter?
Hong Kong dollar against the U.S. dollar in 1997. - ANSWhich of the following is not an example
of a failed peg?
The currency strengthens. - ANSWhat generally happens when a central bank unexpectedly
increases interest rates?
A surprise change in inflation expectations - ANSWhich driver weakened the Swiss franc?
How currencies may be overvalued or undervalued. - ANSWhat does the Big Mac index show?
Surprise changes in interest rates, inflation, and trade. - ANSWhich of the following are
short-term drivers of currency valuation?
Global investors are attracted by higher bond yields in high interest rate countries. - ANSBy
what mechanism do interest rates affect currency values?
U.S. Stocks rally on Fed's Surprise reduction of Interest Rate. - ANSWhich of these headlines
could move a currency pair?
2% - ANSWhat is the most common target inflation rate for an advanced economy?
To halt the vicious cycle of deflation - ANSWhat was the primary goal of Abenomics?
prices decline - ANSHere is the vicious deflationary cycle. What step connects the lower left
gray arrow to the upper right blue arrow?
Inflation - ANSWere the two oil crises in the 1970s linked to deflation or inflation?
To respond quickly to changes in the currency markets. - ANSWhy would Jack Welch suggest
putting all company plants on barges?
Inaccurately because the scope of GDP measurements can change. - ANSHow accurately do
GDP portray the economy and why?
It went down - ANSConsider 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?
C= Consumer spending
I = Investment (Gross Fixed Capital Formation)
G= Government Spending
X= Exports
M= Imports - ANSwhat is the meaning of each letter in the GDP formula, C+I+G+(X-M).
Sweden performed better - ANSHere 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.
Consumer spending accounts for two-thirds of the U.S. economy when the number of
unemployed consumers rises, there is less consumer spending. - ANSIn the United States, why
is there a strong correlation between unemployment and GDP?
The country has deflation. The bottom line is nominal growth and the top line is real growth. -
ANSHere 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?
PMI - ANSWhich of the following lines is the best leading economic indicator?
Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down. -
ANSWhat typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the
onset of a recession in the United States?
Timeliness of release - ANSWhich of the following qualities of economic indicators do investors
prize the most?
Because GDP statistics are released well after other economic indicators. - ANSWhy is the
release of GDP statistics less interesting to investors than the release of other economic
indicators?
, GDP - ANSWhich of the following important U.S. economic indicators is only available on a
quarterly basis?
nonfarm payrolls - ANSWhich economic indicator is most directly linked to unemployment?
To know when specific economic data points are a positive or negative surprise. - ANSWhat is
the main reason that investment banks create estimates of economic indicators?
They do not consistently presage turning points. - ANSWhich of the following is the biggest
pitfall of economic indicators?
Japan - ANSWhich country is the fourth biggest importer and exporter?
Hong Kong dollar against the U.S. dollar in 1997. - ANSWhich of the following is not an example
of a failed peg?
The currency strengthens. - ANSWhat generally happens when a central bank unexpectedly
increases interest rates?
A surprise change in inflation expectations - ANSWhich driver weakened the Swiss franc?
How currencies may be overvalued or undervalued. - ANSWhat does the Big Mac index show?
Surprise changes in interest rates, inflation, and trade. - ANSWhich of the following are
short-term drivers of currency valuation?
Global investors are attracted by higher bond yields in high interest rate countries. - ANSBy
what mechanism do interest rates affect currency values?
U.S. Stocks rally on Fed's Surprise reduction of Interest Rate. - ANSWhich of these headlines
could move a currency pair?
2% - ANSWhat is the most common target inflation rate for an advanced economy?
To halt the vicious cycle of deflation - ANSWhat was the primary goal of Abenomics?
prices decline - ANSHere is the vicious deflationary cycle. What step connects the lower left
gray arrow to the upper right blue arrow?
Inflation - ANSWere the two oil crises in the 1970s linked to deflation or inflation?
To respond quickly to changes in the currency markets. - ANSWhy would Jack Welch suggest
putting all company plants on barges?
