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BMC (BLOOMBERG) QUES TIONS
WITH CORRECT ANSWERS
UPDATED AND LATEST
Question : Which of the following lines is the best leading
economic indicator?
Correct answer: PMI
Question : 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.
Question : Which of the following qualities of economic
indicators do investors prize the most?
Correct answer: Timeliness of release
Question : Why is the release of GDP statistics less
interesting to investors than the release of other economic indicators?
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Correct answer: Because GDP statistics are released well
after other economic indicators.
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 : 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.
Question : Which of the following is the biggest pitfall of
economic indicators?
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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 : What generally happens when a central bank
unexpectedly increases interest rates?
Correct answer: The currency strengthens.
Question : Which driver weakened the Swiss franc?
Correct answer: A surprise change in inflation
expectations
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Question : What does the Big Mac index show?
Correct answer: How currencies may be overvalued or
undervalued.
Question : Which of the following are short-term drivers
of currency valuation?
Correct answer: Surprise changes in interest rates,
inflation, and trade.
Question : By what mechanism do interest rates affect
currency values?
Correct answer: Global investors are attracted by higher
bond yields in high interest rate countries.
Question : Which of these headlines could move a
currency pair?
Correct answer: U.S. Stocks rally on Fed's Surprise
reduction of Interest Rate.