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 GPD statistics are released well after other ec...
Bloomberg Concept Questions
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 GPD statistics are released well after other economic indicators
Which of the following important US economic indicators is only available on a quarterly basis? - Answer- GDP
Which economic indicator is most directly linked to unemployment? - Answer- nonfarm payrolls
How accurately do GDP statistics portray the economy and why? - Answer- inaccurately
because the scope of GDP measurements can change
Which of the following lines is the best leading economic indicator? - Answer- PMI
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.
How have economic forecasts for this country (US) evolved? - Answer- minimal change
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
Which country is the fourth biggest importer and exporter? - Answer- Japan
Which of the following is not an example of a failed peg? - Answer- Hong Kong dollar against the U.S. dollar in 1997.
What generally happens when a central bank unexpectedly increases interest rates? - Answer- The currency strengthens.
Which driver weakened the Swiss franc? - Answer- A surprise change in inflation expectations What does the Big Mac index show? - Answer- how currencies may be overvalued or undervalued
Which of the following are short-term drivers of currency valuation? - Answer- surprise changes in interest rates, inflation, and trade
By what mechanism do interest rates affect currency values? - Answer- Global investors
are attracted by higher bond yields in high interest rate countries.
Which of these headlines could move a currency pair? - Answer- U.S. Stocks rally on Fed's Surprise reduction of Interest Rate.
What is the most common target inflation rate for an advanced economy? - Answer- 2%
What was the primary goal of Abenomics? - Answer- to halt the vicious cycle of deflation
Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper right blue arrow? - Answer- prices decline
Were the two oil crises in the 1970s linked to deflation or inflation? - Answer- inflation
What is the median estimate for the number of Japanese yen per euro for calendar year
2020? - Answer- 126
What is the difference between Norma and RBC's estimate for the Japanese yen/euro currency pair for the end of Q1 2018? - Answer- 40 yen
Why would Jack Welch suggest putting all company plants on barges? - Answer- To respond quickly to changes in the currency markets.
Which of the following options is the best way for investors to manage currency risk? - Answer- By locking in forward rates for known foreign payments.
What quality of U.S. government bonds causes investors to buy them when market volatility rises? - Answer- US Government bonds are considered low risk
Why is fixed income called Fixed income? - Answer- Because the repayment amounts and timings are fixed for ordinary bonds
Why does the United States have a strong reputation for creditworthiness? - Answer- because it has the right to tax the wealthiest population on earth.
What is one reason why foreign governments lend to the U.S. government? - Answer- To build liquid FX reserves
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