BMC

Which driver weakened the Swiss franc? (C)

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?

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?

The "misery index" is often cited in the media as a way to measure consumer pain. It is defined as the inflation rate plus the unemployment rate.....

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?

Here is the economic calendar for the UK for august 2013. Examine indicators like PMI,......

This chart was captured in mid-2014. At that point in time, which of the following terms.....

How have economic forecasts for this county evolved?

These charts show data for four countries as of early 2016. For each country, the purple line....

What is the main reason that investment banks create estimates of economic indicators?

Which of the following is the biggest pitfall of economic indicators?

Here is a chart displaying estimates of the initial jobless claims indicator, one of the main unemployment....

Which country is the fourth biggest importer and exporter?

In 1994, the Mexican peso declined against the US dollar during so-called "Tequila Crisis."....

Using the chart given, how many NZD can you buy with 100 AUD?

Allison lives in America and has just retired. It is early 2016.....

Review the currency pair charts for the Barbadian dollar agains the Jamaican dollar......

Which of the following is not an example of a failed peg?

Use the cart below to answer the question. How many Danish crown (DKK) will buy 100 (JPY)

According to the Big Mac index screen, which of the following four countries' currency is the most undervalued?

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?

on June 23. 2016, the UK voted to leave the EU.....

In early 2016, the same Germany machinery company has interest from four prospective clients.....

What is the median estimate for the number of Japanese yen per euro for calendar year 2020?

What is the difference between Norma and RBC's estimate for the Japanese yen/euro...

Imagine you are a Dutch diamond dealer who sources diamonds from south africa

Why would Jack Welch suggest putting all company plants on barges?

Samsung is based in South Korea and reports in South Korean won....

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 does the Big Mac index show? (A)

Which of the following are short-term drivers of currency valuation? (A)

By what mechanism do interest rates affect currency values? (C)

According to the Big Mac index screen, which of the following four countries' currency is the most undervalued? (D)

What generally happens when a central bank unexpectedly increases interest rates? (D)

What is the most common target inflation rate for an advanced economy? (C)

What is the median estimate for the number of Japanese yen per euro for Calendar year 2020? (D)

What is the primary goal of Abenomics? (B)

Here is the vicious deflationary cycle. What step connects the lower left gray arrow to the upper right blue arrow? (B)

Were the two oil crises in the 1970s linked to deflation or inflation? (C)

On June 23, 2016, the United Kingdom voted to leave the European Union...... (D)

In the early 2016, the same Germany machinery company has interest from four prospective clients from emerging markets: Indonesia, Brazil, Russia, and South Africa..... (C)

What is the difference between Nomura and RBC's estimate for the Japanese yen/euro currency pair for the end of Q1 2018? (D)

Imagine you are a Dutch diamond dealer who sources diamonds from South Africa...... (A)

Why would Jack Welch suggest putting all company plants on barges? (A)

Samsung is based in South Korea and reports in South Korean won.... (A)

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? (A)

Which of the following options is the best way for investors to manage currency risk? (D)

What do the green bars at the bottom signify? (B)

According to the table, who owns approximately 1.3% of actively trades US debt? (D)

What quality of U.S. government bonds causes investors to buy them when market volatility rises? (C)

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.?

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 countries shown makes the greatest relative use of short-term government financing?

Which of the following is the strongest driver of inflation?

This chart shows the output gap in the US from 1949 to 1973. What was the output gap in 1973?

Here is a chart from the ILBE function displaying US 10-year inflation expectations as of early 2017....

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?

Here is the output gap in the US in early 1975. What was likely the fed interest rate policy?

Why does the yield curve naturally slope upwards?

Why did the corporate spread significantly widen during the 2008 market crash?

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?

What is the 10-year to 3-month term premium of the following yield curve?

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?

Which yield curve is most likely linked to a booming economy

Why does the yield curve tend to invert shortly before a recession?

The two yield curves in the chart are from September 10, 2001 (yellow) and October 10, 2001 (green)......

Why do companies do IPOs?

Why do company manager-owners smile when they ring the stock exchange bell at their IPO?

The Dow Jones industrial average index has an unusual weighting methodology. Unlike the S&P 500, it is weighted by share price.....

Here is a chart of the index value for the S&P 500 and the United Kingdom's main equity index the FTSE 100, from the end of 2008 to early 2015.....

in 1999, James Glassman and Kevin Hassett published a book called "Dow 36,000"....

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?

The S&P 500 stood at 1848 at the end of 2013. According to the chart, what would the approximate return be on the S&P 500....

Assuming that an investor in the S&P 500 reinvests his dividends. According to the chart,.....

Why are equities volatile?

Which of the following statements is true?

In the example highlighting the differences between bond holders and shareholders, we equated surgeon Jenny......

You buy the stock of four consumer goods companies at the end of 2004 and hold them until August 2010.....

What does the release of earnings announcements have in common with the release of economic indicators?

The number at the bottom right of each supplier's box shows the portion of Boeing's total costs in the last year that went to that supplier...

Which company is most exposed to the ups and downs of the aircraft engine industry?

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?

Here is a table from the Bloomberg Intelligence aluminum dashboard which shows the different end-uses of aluminum in China.....

When an analyst is looking at a company for the first time, which of the following four activities does he do first?

Here is a table from the Bloomberg Intelligence copper dashboard which shows the different end-users of the "red metal."....

Here is a breakdown of post-it note inventor 3M's revenue by industry. Which of the following industry drivers....

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?

Which company is worth more, Coca-Cola or Pepsi?

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?

Which of the following is most likely to be the most challenging part of this first step of the absolute valuation process?

What is a reason one discounts future cash flows as part of the absolute valuation process?

What role does beta play in absolute valuation>

Here is the capital structure of Microsoft. What part of the $42.03 share price (to the nearest dollar) is represented by cash?

How is enterprise value calculated?

Which of the following stocks is most sensitive to the movement of the overall stock?

Which of the following assigns the same relative weightings to short-term and long-term outcomes as the absolute valuation process?

Here is the WACC function for US drug company Pfizer....What is the WACC?

A rise in which of the following inputs will increase an absolute valuation?

how do earnings yields differ from bond yields?

At its peak at the end of 1999, Microsoft has a market cap of $600B. PC sales were booming and most PCs ran on Microsoft software.....

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?

Here is a chart of the Nasdaq Composite, the world's main technology index. It peaked in the dotcom bubble on March 10, 2000. The P/E....

The World Equity index function shown contains two valuation metrics for the S&P 500. The Nike description page contain the same two valuation metrics.

If the earnings per share of a company is $1 and the earnings yield is 2%, What is the price per share?

This chart shows a scatterplot with the x-axis being the estimated sales growth and the y-axis being the estimated P/E multiple....