Bloomberg Full And Revised ANSWERS Updated 2023.pdf

1. Why would Jack Welch suggest putting all company plants on barges? a. To respond quickly to changes in the currency markets 2. Samsung is based in South Korea and reports in South Korean won. Samsung sells its products around the world and the geographic breakdown of its 2015 revenues is in the first chart. The other charts show how some major world currencies moved against the South Korean won through the course of 2015. Of the currencies shown, which currency movement boosted Samsung’s revenue growth the most? a. DOLLAR 3. Legendary investor Warren Buffet said, “Gold gets dug out of the ground… Then we melt it down, dig another hole, bury it again, and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” Based on this quotation, what quality of gold is he referring to? a. Its storage costs 4. Which of the following options is the best way for investors to manage currency risk? a. By locking in forward rates for known foreign payments The Roots of the Bond Market Knowledge Check 1  Surplus Knowledge Check 2  Taiwan Knowledge Check 3  U.S. Government Bonds are considered low risk Knowledge Check 4  Because the repayment amounts and timings are fixed for ordinary bonds SECTION QUIZ 1. Why does the United States have a strong reputation for creditworthiness? a. Because it has the right to tax the wealthiest population on earth. 2. What is one reason why foreign governments lend to the U.S. government? a. To build liquid FX reserves. 3. What does one yellow bar depict in this debt distribution diagram? a. Coupon Repayment 4. Which one of the following actors benefits when interest rates go up? a. An investor who is about to buy bonds. Bond Valuation Knowledge Check 1  Investors do not alter the calculation. Knowledge Check 2  There is no general rule. Knowledge Check 3  Both countries are highly creditworthy. Knowledge Check 4  A 4% annual yield on a credit risk-free 10-year government bond from the mythical country of Utopia Knowledge Check 5  A 5% annual yield on an investment in 10-year U.S. government bonds