What Do You Know About Economic Indicator? Trivia Quiz

10 Questions | Total Attempts: 24

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What Do You Know About Economic Indicator? Trivia Quiz

What do you know about an economic indicator? These indicators help in explaining the state of an economy or predicting to which side it might shift. By taking this quiz, you will get to review what you know about some economic indicators and what their changes indicate. How about you check the quiz out and learn some more about the indicators.


Questions and Answers
  • 1. 
    How does inflation play a role in the currency rate of a country?
    • A. 

      Higher inflation levels raise the value of a country's currency in the market.

    • B. 

      Lower inflation levels raise the value of a country's currency in the market.

    • C. 

      Inflation levels do not necessarily have an impact on a country's currency.

    • D. 

      Inflation rate levels and currency levels are directly proportional to eachother.

  • 2. 
    The BOJ recently expanded its Asset Purchase Program in order to do what for its economy?
    • A. 

      Expanding the APP allowed for a more powerful value for the Yen.

    • B. 

      The BOJ monetary policy did very little for the Japanese economy as a whole.

    • C. 

      The expansion of the APP allowed for the Japanese market to have an increase flow of money into their system while weakening the Yen paired against other currencies.

    • D. 

      The BOJ fiscal policy only serves to strengthen the Yen against other currencies which is why there was a sudden skyrocketing of the Yen paired against the U.S. dollar since the program was expanded.

  • 3. 
    Complete the following:  "Central bank policies may have _______ on the perception of a currency".
    • A. 

      A direct impact

    • B. 

      Too much oversight

    • C. 

      An implicit relationship

    • D. 

      Very little to offer

    • E. 

      To change policies

  • 4. 
    Quantitative Easing usually does what of the following?
    • A. 

      Cause the country's currency value to decrease.

    • B. 

      Stimulates economy revenue.

    • C. 

      Provides more liquidity in the consumer marketplace.

    • D. 

      Strengthens the country's currency exchange rate.

    • E. 

      Increases devaluation of a currency.

  • 5. 
    Non-Farm Payrolls affect all risk assets?
    • A. 

      True

    • B. 

      False

  • 6. 
    A good GDP report is usually ____ .
    • A. 

      Currency-negative.

    • B. 

      Currency-neutral.

    • C. 

      Currency dependent.

    • D. 

      None of the above.

  • 7. 
    The relationship between inflation and currency exchange rates is known as the ______ Theory.
    • A. 

      Investment

    • B. 

      Purchasing Price Parity

    • C. 

      Advanced Purchasing Power

    • D. 

      Inflation to Currency

    • E. 

      Economic Monetary Parity

    • F. 

      Purchasing Power Parity

  • 8. 
    In regards to using Interest rates as an indicator of investing, what do traders/investors usually look for in a country comparatively to other countries?
    • A. 

      Investors look for yield and they purchase low-interest currencies against high-interest rates to get a high yield.

    • B. 

      Investors are always looking for yield, and they normally find that in purchasing high-interest currencies against low interest-rate currencies to get a good return from their investment.

    • C. 

      Investors want interest rates to be lower in one country they are investing in and high in another country they are investing in.

    • D. 

      Investors trade high-interest investments with other high-interest rate investments and use hedging to make sure that they don't lose a lot of money.

  • 9. 
    What is "carry-trading"?
    • A. 

      Getting rid of one currency to find a higher yielding currency.

    • B. 

      Selling currencies to create revenue.

    • C. 

      Carrying one currency for a long period of time.

    • D. 

      Keeping "LONG" in a position for greater than one month.

  • 10. 
    When interest rates that are inflation-adjusted are high in the U.S. investors both foreign and domestic want to invest their money with the U.S. in order to have a high yield on their invested money, so essentially the investors are looking for a high return on their investment.  With greater demand of investors wanting to invest in the dollar, the value consequently ______.