BMC PASSED Exam Questions and
CORRECT 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 expect...
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
Allison lives in America and has just retired. It is early 2016..... - Correct Answer- Norway
Review the currency pair charts for the Barbadian dollar agains the Jamaican dollar...... -
Correct Answer- Hong Kong dollar against the Macanese pataca
Which of the following is not an example of a failed peg? - Correct 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) - Correct Answer- 5.360
According to the Big Mac index screen, which of the following four countries' currency is the
most undervalued? - Correct Answer- China
What generally happens when a central bank unexpectedly increases interest rates? - Correct
Answer- The currency strengthens.
Which driver weakened the Swiss franc? - Correct Answer- A surprise change in inflation
expectations
What does the Big Mac index show? - Correct Answer- How currencies may be overvalued
or undervalued.
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