Which driver weakened the Swiss franc? (C)
a) A surprise change in net export expectations
b)A surprise change in interest rates expectations
c)A surprise change in inflation expectations
d)A surprise change in valuation expectations
How accurately do GDP portray the economy and why?
In...
BMC EXAM QUESTIONS AND ANSWERS
Which driver weakened the Swiss franc? (C) - answer a) A surprise change in net export expectations
b)A surprise change in interest rates expectations
c)A surprise change in inflation expectations
d)A surprise change in valuation expectations
How accurately do GDP portray the economy and why? - answer Inaccurately because the scope
of GDP measurements can change.
Consider 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? - answer It went down
Here 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. - answer Sweden performed better
In the United States, why is there a strong correlation between unemployment and GDP? - answer Consumer spending accounts for two-thirds of the U.S. economy when the number of unemployed consumers rises, there is less consumer spending.
Here 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? - answer The country has deflation. The bottom line is nominal growth and the top line is real growth.
Which of the following lines is the best leading economic indicator? - answer PMI The "misery index" is often cited in the media as a way to measure consumer pain. It is defined as the inflation rate plus the unemployment rate..... - answer Argentina
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of a recession in the United States? - answer Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down.
Which of the following qualities of economic indicators do investors prize the most? - answer Timeliness of release
Why is the release of GDP statistics less interesting to investors than the release of other economic indicators? - answer Because GDP statistics are released well after other economic indicators.
Which of the following important U.S. economic indicators is only available on a quarterly basis?
- answer GDP
Which economic indicator is most directly linked to unemployment? - answer nonfarm payrolls
Here is the economic calendar for the UK for august 2013. Examine indicators like PMI,...... - answer Above expectations
This chart was captured in mid-2014. At that point in time, which of the following terms..... - answer Deceleration
How have economic forecasts for this county evolved? - answer Minimal Change
These charts show data for four countries as of early 2016. For each country, the purple line.... - answer Russia What is the main reason that investment banks create estimates of economic indicators? - 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? - answer They do not consistently presage turning points.
Here is a chart displaying estimates of the initial jobless claims indicator, one of the main unemployment.... - answer 260
Which country is the fourth biggest importer and exporter? - answer Japan
In 1994, the Mexican peso declined against the US dollar during so-called "Tequila Crisis.".... - answer Both countries had large dollar-denominated debts
Using the chart given, how many NZD can you buy with 100 AUD? - answer 107.89
Allison lives in America and has just retired. It is early 2016..... - answer Norway
Review the currency pair charts for the Barbadian dollar agains the Jamaican dollar...... - answer Hong Kong dollar against the Macanese pataca
Which of the following is not an example of a failed peg? - answer Hong Kong dollar against the U.S. dollar in 1997.
Use the cart below to answer the question. How many Danish crown (DKK) will buy 100 (JPY) - answer 5.360
According to the Big Mac index screen, which of the following four countries' currency is the most undervalued? - answer China
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