SECTION QUIZ
1. 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 l
...
SECTION QUIZ
1. 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 is there the most
controversy among the analyst community about 2016 growth?
a. RUSSIA
2. What is the main reason that investment banks create estimates of economic
indicators?
a. To know when specific economic data points are a positive or negative surprise.
3. Which of the following is the biggest pitfall of economic indicators?
a. They do not consistently presage turning points.
4. Here is a chart displaying estimates of the initial jobless claims indicator, one of the
main unemployment statistics in the U.S. It measures the number of new applicants for
unemployment benefits. What was the level of the analyst with the most optimistic
outlook?
a. 260
Currency Market Mechanics
Knowledge Check 1
• JAPAN
Knowledge Check 2
• Both countries had large dollar-denominated debts.
Knowledge Check 3
• 107.89
SECTION QUIZ
1. Allison lives in America and has just retired. It is early 2016. She has long had dreams of
cruising the fjords on the west coast of Norway, visiting Buckingham Palace in the
United Kingdom, seeing the cherry blossoms in Japan, and going to the top of the Eiffel
Tower in France. She last considered all four options on New Year’s Day 2008. She
would like to select the trip to go on based on which country’s currency has
subsequently weakened the most against the U.S. dollar. Where should she go on
vacation?
a. NORWAY
2. Review the currency pair charts for the Barbadian dollar against the Jamaican dollar, the
Czech koruna against the Polish zloty, the Nigerian naira against the Ghanaian cedi, and
the Hong Kong dollar against the Macanese pataca. Which pair is pegged.
a. The Hong Kong dollar against the Macanese pataca
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