BMC COMPLETE QUESTIONS AND
ANSWERS
Which driver weakened the Swiss franc? (C) - CORRECT
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? -
CORRECT 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? -
CORRECT 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. - CORRECT ANSWER-
Sweden performed better
In the United States, why is there a strong correlation between
unemployment and GDP? - CORRECT 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? - CORRECT
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? - CORRECT 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..... - CORRECT ANSWER-Argentina
What typically happens to nonfarm payrolls, the PMI indicator,
and housing starts at the onset of a recession in the United
States? - CORRECT 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? - CORRECT ANSWER-Timeliness of
release
Why is the release of GDP statistics less interesting to
investors than the release of other economic indicators? -
CORRECT 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? - CORRECT ANSWER-
GDP
Which economic indicator is most directly linked to
unemployment? - CORRECT ANSWER-nonfarm payrolls
, Here is the economic calendar for the UK for august 2013.
Examine indicators like PMI,...... - CORRECT ANSWER-Above
expectations
This chart was captured in mid-2014. At that point in time,
which of the following terms..... - CORRECT ANSWER-
Deceleration
How have economic forecasts for this county evolved? -
CORRECT ANSWER-Minimal Change
These charts show data for four countries as of early 2016. For
each country, the purple line.... - CORRECT ANSWER-Russia
What is the main reason that investment banks create
estimates of economic indicators? - CORRECT 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? - CORRECT 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.... - CORRECT
ANSWER-260
Which country is the fourth biggest importer and exporter? -
CORRECT ANSWER-Japan
In 1994, the Mexican peso declined against the US dollar
during so-called "Tequila Crisis.".... - CORRECT ANSWER-
Both countries had large dollar-denominated debts
Using the chart given, how many NZD can you buy with 100
AUD? - CORRECT ANSWER-107.89
ANSWERS
Which driver weakened the Swiss franc? (C) - CORRECT
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? -
CORRECT 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? -
CORRECT 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. - CORRECT ANSWER-
Sweden performed better
In the United States, why is there a strong correlation between
unemployment and GDP? - CORRECT 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? - CORRECT
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? - CORRECT 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..... - CORRECT ANSWER-Argentina
What typically happens to nonfarm payrolls, the PMI indicator,
and housing starts at the onset of a recession in the United
States? - CORRECT 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? - CORRECT ANSWER-Timeliness of
release
Why is the release of GDP statistics less interesting to
investors than the release of other economic indicators? -
CORRECT 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? - CORRECT ANSWER-
GDP
Which economic indicator is most directly linked to
unemployment? - CORRECT ANSWER-nonfarm payrolls
, Here is the economic calendar for the UK for august 2013.
Examine indicators like PMI,...... - CORRECT ANSWER-Above
expectations
This chart was captured in mid-2014. At that point in time,
which of the following terms..... - CORRECT ANSWER-
Deceleration
How have economic forecasts for this county evolved? -
CORRECT ANSWER-Minimal Change
These charts show data for four countries as of early 2016. For
each country, the purple line.... - CORRECT ANSWER-Russia
What is the main reason that investment banks create
estimates of economic indicators? - CORRECT 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? - CORRECT 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.... - CORRECT
ANSWER-260
Which country is the fourth biggest importer and exporter? -
CORRECT ANSWER-Japan
In 1994, the Mexican peso declined against the US dollar
during so-called "Tequila Crisis.".... - CORRECT ANSWER-
Both countries had large dollar-denominated debts
Using the chart given, how many NZD can you buy with 100
AUD? - CORRECT ANSWER-107.89
