loomberg BMC Exam Questions and Correct Verified Answers
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Bloomberg
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Bloomberg
A 4% annual yield on a credit risk-free 10-year government bond from the mythical country of Utopia. -
Which would you prefer
A 5% annual yield on an investment in 10-year U.S. government bonds - Which would you prefer?
The large government bond market competes for investors attention via yields...
bloomberg BMC Exam Questions and
Correct Verified Answers
A 4% annual yield on a credit risk-free 10-year government bond from the mythical country of Utopia. -
✔✔Which would you prefer
A 5% annual yield on an investment in 10-year U.S. government bonds - ✔✔Which would you prefer?
The large government bond market competes for investors attention via yields - ✔✔What is
the primary reason for U.S. government bond yields to ripple through the bond market?
Creditworthiness - ✔✔A rise in which of the following measures would typically send a
government bond price up?
by comparing the yields of single bonds - ✔✔How do investors compare bonds?
wartime activities - ✔✔Which of the following is the strongest driver of inflation?
By compensating investors for inflation - ✔✔Investors who fear rising inflation may buy
Treasury Inflation Protected Securities (TIPS). How do TIPS shield lenders from inflation?
Core PCE - ✔✔What is the Federal Reserve's favorite inflation gauge?
To compensate leaders for the greater risk of long-term loans compared to short-term loans -
✔✔Why does the yield curve naturally slope upwards.
A tendency to expand the borrowing capacity of the company. - ✔✔What impact will a tightening of
the corporate spread most likely have on a company?
, Corporate impact, global impact, consumer impact. - ✔✔What are the three main
transmission mechanisms by which the yield curve affects the economy?
A house - ✔✔The purchase of which of the following products is most affected by interest rates?
Central bank interest rates - ✔✔What is the primary driver of the left-hand end of the yield curve?
An inverted yield curve means that bond traders are predicting interest rate cuts, and interest rate
cuts happen in response to a recession. - ✔✔Why does the yield curve tend to invert shortly before
a recession?
IPOs incentivize entrepreneurs to innovate as IPOs provide a way for entrepreneurs to monetize
their work. - ✔✔Why do companies do IPOs?
an IPO crystallizes the value of the manager-owners stake. - ✔✔Why do company manager-
owners smile when they ring the stock exchange bell at their IPO?
Her mortgage payments and necessities are fixed. - ✔✔What is the prime reason that
Jenny's discretionary income is more volatile than her salary?
A shareholder in a booming economy. - ✔✔A wedding planning company has a high fixed-cost
base and a lot of debt. Who would you rather be?
Due to the residual nature of earnings - ✔✔Why are equities volatile?
When you buy an equity, the most you can lose is 100% and your potential gain is unlimited. -
✔✔Which of the following statements is true?
Both are estimated in advance by analysts. - ✔✔What does the release of earnings
announcements have in common with the release of economic indicators?
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