2023 Bloomberg Markets Concepts Test 1
All New Qs & As for A++ Test - Guaranteed Pass!
- In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What
does this event reflect about the nature of GDP?
Answer: If the measurement of economic activity evolves, GDP can change.
- 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?Answer: The country has inflation. The top line is nominal growth and the bottom line is real growth.
- Which of the following lines is the best leading economic indicator?
Answer: PMI
- GDP per capita is a measure of prosperity because it divides the total GDP of a
country by its population. Which of the below forecasts for a country would result in the highest GDP per capita growth?
Answer: An increase of 2% in GDP and a population growth of 0%
- What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at
the onset of a recession in the United States?
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?
Answer: Timeliness of release
- Why is the release of GDP statistics less interesting to investors than the release
of other economic indicators?Answer: Because GDP statistics are released well after other economic indicators. 1 / 2
- Which of the following important U.S. economic indicators is only available on a
quarterly basis?
Answer: GDP
- Which economic indicator is most directly linked to the average person's cost of
living?
Answer: CPI
- Examine China's predicted economic activity on the below table captured in April
- As of that date, which of the following terms would have best described the
predicted growth in the Chinese economy for 2021? (graph)
Answer: Deceleration
- How have economic forecasts for this country evolved as shown in the chart
below?
Answer: Minimal Change
- These charts show data for four countries as of early 2016. For each country,
the purple line denotes historic real GDP growth. The white line denotes the consensus estimated real GDP growth. The red line denotes the most pessimistic analyst forecast. The green line denotes the most optimistic analyst forecast. For which country does the analyst community exhibit the widest disagreement about 2016 growth prospects?
Answer: Russia
- What is the main reason that investment banks create estimates of eco- nomic
indicators?
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?
Answer: They are not sufficiently timely to make informed investment decisions.
- Here is a chart displaying estimates of the initial jobless claims indicator, one of
- / 2
the main unemployment statistics in the U.S. It measures the number of new