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Bloomberg market concepts Questions with Approved Answers | Latest solutions
Question 1: How accurately do GDP portray the economy and
why?
CORRECT ANSWER : Inaccurately because the scope of GDP
measurements can change.
Question 2: Consider the formula GDP = C+I+G+(X-M). A
country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year, the dollar growth in imports is greater than the dollar growth in domestic consumption.Assuming nothing else has changed, what happened to GDP?
CORRECT ANSWER : It went down
Question 3: what is the meaning of each letter in the GDP
formula, C+I+G+(X-M).
CORRECT ANSWER : C= Consumer spending, I = Investment
(Gross Fixed Capital Formation), G= Government Spending, X= Exports, M= Imports
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Question 4: Here is the most important economic data for
Australia and Sweden. which economy did better year-over-year (YOY) in the fourth quarter of 2013 compared to the fourth quarter of 2012? Use the two charts to investigate.
CORRECT ANSWER : Sweden performed better
Question 5: In the United States, why is there a strong
correlation between unemployment and GDP?
CORRECT ANSWER: Consumer spending accounts for two-
thirds of the U.S. economy when the number of unemployed consumers rises, there is less consumer spending.
Question 6: 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?
CORRECT ANSWER : The country has deflation. The bottom
line is nominal growth and the top line is real growth.
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Question 7: Which of the following lines is the best leading
economic indicator?
CORRECT ANSWER : PMI
Question 8: 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 9: Which of the following qualities of economic
indicators do investors prize the most?
CORRECT ANSWER : Timeliness of release
Question 10: 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 11: Which of the following important U.S. economic
indicators is only available on a quarterly basis?
CORRECT ANSWER : GDP
Question 12: Which economic indicator is most directly linked
to unemployment?
CORRECT ANSWER : nonfarm payrolls
Question 13: 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 14: Which of the following is the biggest pitfall of
economic indicators?