Bloomberg Assessment: Sample Test Questions

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BLOOMBERG ASSESSMENT (BAT) SAMPLE TEST QUESTIONS I. Economics You have just been transferred to Sydney and cover Australia and New Zealand on the sovereign research desk. Australia and New Zealand operate under a free trade agreement. No barriers to trade exist, and both currencies float. In this environment, an increase in expected inflation in New Zealand would most likely cause what effect? Choose One Answer o o o  An increase in exports from New Zealand to Australia An increase in imports to New Zealand from Australia An increase in the New Zealand Dollar versus the Australian Dollar A decline in the New Zealand Dollar versus the Australian Dollar II. Financial Statements Analysis Pinnacle Entertainment is a gaming…show more content…
“The real currency war is actually between Chimerica -- China plus America -- and the rest of the world,” Ferguson said in an interview at the World Knowledge Forum in Seoul. “It would be much better to have some kind of Plaza-like international agreement and I very much hope that at the G-20 summit in Seoul next month this will be No.1 on the agenda.” The Plaza Agreement reached in 1985 prompted a decline in the U.S. dollar against its Japanese and German counterparts. Brazilian Finance Minister Guido Mantega said last month that a “currency war” was under way, in which economies are weakening currencies to support exports. At an International Monetary Fund meeting this month in Washington, finance chiefs failed to narrow differences over currencies, with China accused of undervaluing the yuan and low U.S. interest rates criticized for flooding emerging markets with cash. “Currency appreciation is necessary,” Ferguson said in the interview late yesterday. “If you insist on building up a vast horde of dollar-denominated reserves you will create distortions in the world economy that will ultimately come back and bite you.” China doesn’t need a dollar peg, because its workers
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