FINA 385 (FINA 385)

What was the output gap in 1973? (see chart 8) a) +3% b) +160 c) -3.2% d) -80 At the point in time shown, where is the country’s 10-y inflation expectation in relation to the Central Bank’s inflation target? a) 2.0239% above b) c) 0.0239% above d) 0.4761 below Investors who fear rising inflation may buy Treasury Inflation-Protected Securities (TIPS). How do TIPS shield lenders from inflation? a) By disbursing gold bullion b) By offsetting the inflation with deflation c) By tri...

BLOOMBERG MARKET CERTIFICATE REVIEW QUESTIONS What does the Big Mac index show? a) How the law of one price is true of consumer products b) How currencies may be overvalued or undervalued c) How interest rates and inflation affect trade d) How The Economist magazine estimates inflation Which of these headlines could move a currency pair a) U.S. Stocks Rally on Fed’s Surprise Reduction of Interest Rate b) Railroad Rate Hikes Drive Dichotomy of Necessary c) Hong Kong ‘Firmly Committed...

FINA 385 BMC_Review_Questions & Answers

BLOOMBERG MARKET CERTIFICATE REVIEW QUESTIONS AND ANSWERS What does the Big Mac index show? a) How the law of one price is true of consumer products b) How currencies may be overvalued or undervalued c) How interest rates and inflation affect trade d) How The Economist magazine estimates inflation Which of these headlines could move a currency pair a) U.S. Stocks Rally on Fed’s Surprise Reduction of Interest Rate b) Railroad Rate Hikes Drive Dichotomy of Necessary c) Hong Kong ‘Firmly Comm...