BMC Questions & Answers_2022.
- How accurately do GDP portray the economy and why?
- Consider the formula GDP = C+I+G+(X-M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In
...
BMC Questions & Answers_2022.
- How accurately do GDP portray the economy and why?
- 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?
- what is the meaning of each letter in the GDP formula, C+I+G+(X-M).
- 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.
- In the United States, why is there a strong correlation between unemployment and GDP?
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?
- Which of the following lines is the best leading economic indicator?
- What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of a recession in the United States?
- Which of the following qualities of economic indicators do investors prize the most?
- Why is the release of GDP statistics less interesting to investors than the release of other economic indicators?
- Which of the following important U.S. economic indicators is only available on a quarterly basis?
- Which economic indicator is most directly linked to unemployment?
- What is the main reason that investment banks create estimates of economic indicators?
- Which of the following is the biggest pitfall of economic indicators?
- Which country is the fourth biggest importer and exporter?
. - Which of the following is not an example of a failed peg?
. - What generally happens when a central bank unexpectedly increases interest rates?
- Which driver weakened the Swiss franc?
- What does the Big Mac index show?
. - Which of the following are short-term drivers of currency valuation?
. - By what mechanism do interest rates affect currency values?
. - Which of these headlines could move a currency pair?
- What is the most common target inflation rate for an advanced economy?
- What was the primary goal of Abenomics?
Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper right blue arrow?
- Were the two oil crises in the 1970s linked to deflation or inflation?
- Why would Jack Welch suggest putting all company plants on barges?
- Legendary investor Warren Buffett said, "Gold gets dug out of the ground..... Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head." Based on this quotation, what quality of gold is he referring to?
- Which of the following options is the best way for investors to manage currency risk?
- What quality of U.S. government bonds causes investors to buy them when market volatility rises?
- Why is fixed income called fixed income?
- Why does the United States have a strong reputation for creditworthiness.
- What is one reason why foreign governments lend to the U.S. government?
- What does one yellow bar depict in this debt distribution diagram?
- Which one of the following actors benefits when interest rates go up?
- When investors doubt the creditworthiness of a borrower, how do they alter their calculation of the bond yield to take into account these doubts?
- As a general rule, what percentage of debt to GDP will make a government's bond yields spike?
- What is true of both the U.K. and the U.S.?
-year government bond from the mythical country of Utopia. - Which would you prefer
- Which would you prefer?
- What is the primary reason for U.S. government bond yields to ripple through the bond market?
- A rise in which of the following measures would typically send a government bond price up?
- How do investors compare bonds?
- Which of the following is the strongest driver of inflation?
- Investors who fear rising inflation may buy Treasury Inflation Protected Securities (TIPS). How do TIPS shield lenders from inflation?
- What is the Federal Reserve's favorite inflation gauge?
- Why does the yield curve naturally slope upwards.
- What impact will a tightening of the corporate spread most likely have on a company?
- What are the three main transmission mechanisms by which the yield curve affects the economy?
- The purchase of which of the following products is most affected by interest rates?
- What is the primary driver of the left-hand end of the yield curve?
- Why does the yield curve tend to invert shortly before a recession?
- Why do companies do IPOs?
- Why do company manager-owners smile when they ring the stock exchange bell at their IPO?
. - What is the prime reason that Jenny's discretionary income is more volatile than her salary?
- A wedding planning company has a high fixed-cost base and a lot of debt. Who would you rather be?
- Why are equities volatile?
- Which of the following statements is true?
- What does the release of earnings announcements have in common with the release of economic indicators?
- Engines are the most expensive, heavy component on an aircraft and are designed with detailed specifications. Which of the following would likely be the best theme for a Rolls-Royce analyst research note to help a portfolio manager decide between investing in Rolls-Royce or United Technologies?
- You are building a financial model of a bifocal lens manufacturer. Which of the following is the best driver to use?
- When an analyst is looking at a company for the first time, which of the following four activities does he do first?
- Company X was expected to have earnings per share of $0.52 for the upcoming quarter. On the day of the results, the company reported earnings per share of $0.83. What happened to the share price when the stock market opened?
- Widget Co has a market capitalization of $100 million. it does a 10-for-1 stock split. it then does a 1-for-16 reverse stock split. Finally, it does a 35-for-1 stock split. Nothing else changes. what's the new market cap?
- What input do both absolute valuation and relative valuation typically require?
. - What is a reason one discounts future cash flows as part of the absolute valuation process?
- How is enterprise value calculated?
- Which of the following assigns the same relative weightings to short-term and long-term outcomes as the absolute valuation process?
- A rise in which of the following inputs will increase an absolute valuation?
- how do earnings yields differ from bond yields?
- What is one possible weakness of this peer approach to valuation?
- What may be a problem of comparing the P/E of a stock to the P/E of the overall market?
- If the earnings per share of a company is $1 and the earnings yield is 2%, What is the price per share?
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