2023 Bloomberg Markets Concepts Test 2

2023 Bloomberg Markets Concepts Test 2

All New Qs & As for A++ Test - Guaranteed Pass!

• "New news" moves markets. Accordingly, the economic indicators that heralds

"new news" are of the most value to traders and investors.

Answer: timeliness of release

• GDP statistics are typically released by the government a month or more after the

period in question, by which point dozens of other indicators have been released.Answer: Because GDP statistics are released well after other economic indicators

• Nonfarm payrolls, CPI and PMI are published monthly. GDP is only pub- lished

on a quarterly basis.

Answer: GDP

• Which economic indicator is most directly linked to unemployment?

Answer: non- farm payrolls

• 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?

• they do not take into account seasonality

2, they are not sufficiently timely to make investment decisions

• they only serve as proxys for economic activity
• they do not consistently presage turning points

Answer: they do not consistently presage turning points

• In 1994, the Mexican peso declined against the US dollar by 37% during the so-

called Tequila Crisis. What exacerbating factor did Mexico's Tequila Crisis have in common with the Argentine crisis of 2002?

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