BMC Answers (Bloomberg), Complete solutions (A+ guide) University of Massachusetts, Lowell.
Question : Which of the following lines is the best leading
economic indicator?
Correct answer: PMI
Question : Which of the following qualities of economic
indicators do investors prize the most?
Correct answer: Timeliness of release
Question : Which of the following important U.S. economic
indicators is only available on a quarterly basis?
Correct answer: GDP
Question : Which economic indicator is most directly linked
to unemployment?
Correct answer: nonfarm payrolls
Question : Which of the following is the biggest pitfall of
economic indicators?
Correct answer: They do not consistently presage turning
points.
Question : Which country is the fourth biggest importer and
exporter?
Correct answer: Japan
Question : Which of the following is not an example of a
failed peg?
Correct answer: Hong Kong dollar against the U.S. dollar in
1997.
Question : Which driver weakened the Swiss franc?
Correct answer: A surprise change in inflation expectations
Question : Which of the following are short-term drivers of
currency valuation?
Correct answer: Surprise changes in interest rates, inflation,
and trade.
Question : Which of these headlines could move a currency
pair?
Correct answer: U.S. Stocks rally on Fed's Surprise reduction
of Interest Rate.
Question : What is the most common target inflation rate for
an advanced economy?
Correct answer: 2%
Question : Were the two oil crises in the 1970s linked to
deflation or inflation?
Correct answer: Inflation
Question : Which of the following options is the best way for
investors to manage currency risk?
Correct answer: By locking in forward rates for known
foreign payments.
Question : Which one of the following actors benefits when
interest rates go up?
Correct answer: An investor who is about to buy bonds.
Question : Which would you prefer
Correct answer: A 4% annual yield on a credit risk-free 10-
year government bond from the mythical country of Utopia.
Question : Which would you prefer?
Correct answer: A 5% annual yield on an investment in 10-
year U.S. government bonds
Question : A rise in which of the following measures would
typically send a government bond price up?
Correct answer: Creditworthiness
Question : Which of the following is the strongest driver of
inflation?