BLOOMBERG MARKET CONCEPTS// bloomberg market concepts LATEST 2022 QUESTIONS AND ANSWERS GRADED A+

BLOOMBERG MARKET
CONCEPTS// bloomberg
market concepts LATEST
2022 QUESTIONS AND
ANSWERS GRADED A+
Inaccurately because the scope of GDP measurements can
change. - CORRECT ANSW-How accurately do GDP portray the
economy and why?
It went down - CORRECT ANSW-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?
C= Consumer spending
I = Investment (Gross Fixed Capital Formation)
G= Government Spending
X= Exports
M= Imports - CORRECT ANSW-what is the meaning of each
letter in the GDP formula, C+I+G+(X-M).
Sweden performed better - CORRECT ANSW-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.
Consumer spending accounts for two-thirds of the U.S. economy
when the number of unemployed consumers rises, there is less
consumer spending. - CORRECT ANSW-In the United States,
why is there a strong correlation between unemployment and
GDP?
The country has deflation. The bottom line is nominal growth and
the top line is real growth. - CORRECT ANSW-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?
PMI - CORRECT ANSW-Which of the following lines is the best
leading economic indicator?
Nonfarm payrolls go down, the PMI indicator goes DOWN, the
housing starts goes down. - CORRECT ANSW-What typically
happens to nonfarm payrolls, the PMI indicator, and housing
starts at the onset of a recession in the United States?
Timeliness of release - CORRECT ANSW-Which of the following
qualities of economic indicators do investors prize the most?
Because GDP statistics are released well after other economic
indicators. - CORRECT ANSW-Why is the release of GDP
statistics less interesting to investors than the release of other
economic indicators?
GDP - CORRECT ANSW-Which of the following important U.S.
economic indicators is only available on a quarterly basis?
nonfarm payrolls - CORRECT ANSW-Which economic indicator
is most directly linked to unemployment?
To know when specific economic data points are a positive or
negative surprise. - CORRECT ANSW-What is the main reason
that investment banks create estimates of economic indicators?
They do not consistently presage turning points. - CORRECT
ANSW-Which of the following is the biggest pitfall of economic
indicators?
Japan - CORRECT ANSW-Which country is the fourth biggest
importer and exporter?
Earnings estimates - CORRECT ANSW-A rise in which of the
following inputs will increase an absolute valuation?
The cash flow from equities can continue indefinitely while the
cash flow from most bonds comes to an end. - CORRECT
ANSW-how do earnings yields differ from bond yields?
The estimated growth can be dramatically wrong. - CORRECT
ANSW-What is one possible weakness of this peer approach to
valuation?
A stock's P/E ratio can remain above or below market average for
extended periods. - CORRECT ANSW-What may be a problem of
comparing the P/E of a stock to the P/E of the overall market?
Hong Kong dollar against the U.S. dollar in 1997. - CORRECT
ANSW-Which of the following is not an example of a failed peg