BMC, Bloomberg Certification Test Questions And Answers
Question 1: What is the formula for GDP?
CORRECT ANSWER : C+I+G+(X-M)
Question 2: In the US, why is there a strong relationship
between unemployment and GDP?
CORRECT ANSWER : Consumer spending accounts for 2/3's
of the US economy. When the number of unemployed consumers rises, there is less consumer spending.
Question 3: What typically happens to nonfarm payrolls, the
PMI indicator, and the 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 4: Which of the following qualities of economic
indicators do investors prize the most?
CORRECT ANSWER : Timeliness of release
Question 5: Why is the release of GDP statistics less
interesting to investors than the release of other economic indicators?
CORRECT ANSWER : Because GDP stats are released well
after other economic indicators
Question 6: Which of the following important U.S. economic
indicators is only available on a quarterly basis?
CORRECT ANSWER : GDP
Question 7: Which economic indicator is most directly linked
to the average person's cost of living?
CORRECT ANSWER : CPI
Question 8: 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 9: Which of the following is the biggest pitfall of
economic indicators?
CORRECT ANSWER : They are not sufficiently timely to
make informed investment decisions
Question 10: Which of the following is an example of a
successful peg?
CORRECT ANSWER: Hong Kong dollar against U.S. dollar
in 1997
Question 11: Which driver weakened the Swiss franc?
CORRECT ANSWER : A surprise change in inflation
expectations
Question 12: What does the Big Mac index show?
CORRECT ANSWER : How currencies may be overvalued or
undervalued
Question 13: Which of the following are short-term drivers of
currency valuation?
CORRECT ANSWER : Surprise changes in interest rates,
inflation, and trade
Question 14: Which of these headlines is most likely to move
a currency pair?