Which of the following qualities of economic indicators do investors prize the most?
timeliness of release
Why is the release of GDP statistics
... [Show More] less interesting to investors than the release of other economic indicators?
because GPD statistics are released well after other economic indicators
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Which of the following important US economic indicators is only available on a quarterly basis?
GDP
Which economic indicator is most directly linked to unemployment?
nonfarm payrolls
How accurately do GDP statistics portray the economy and why?
inaccurately because the scope of GDP measurements can change
Which of the following lines is the best leading economic indicator?
PMI
What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of a recession in the United States?
Nonfarm payrolls go down, the PMI indicator goes DOWN, the housing starts goes down.
How have economic forecasts for this country (US) evolved?
minimal change
What is the main reason that investment banks create estimates of economic indicators?
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 consistently presage turning points
Which country is the fourth biggest importer and exporter?
Japan
Which of the following is not an example of a failed peg?
Hong Kong dollar against the U.S. dollar in 1997.
What generally happens when a central bank unexpectedly increases interest rates?
The currency strengthens.
Which driver weakened the Swiss franc?
A surprise change in inflation expectations
What does the Big Mac index show?
how currencies may be overvalued or undervalued
Which of the following are short-term drivers of currency valuation?
surprise changes in interest rates, inflation, and trade
By what mechanism do interest rates affect currency values?
Global investors are attracted by higher bond yields in high interest rate countries.
Which of these headlines could move a currency pair?
U.S. Stocks rally on Fed's Surprise reduction of Interest Rate.
What is the most common target inflation rate for an advanced economy?
2%
What was the primary goal of Abenomics?
to halt the vicious cycle of deflation
Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper right blue arrow?
prices decline [Show Less]