Fundamental Trading Knowledge Test (Economic Indicators)

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Fundamental Trading Knowledge Test (Economic Indicators)

This quiz is designed to test stock, forex, bonds and future market traders basic knowledge and understanding of economic fundamentals. After you pass this quiz you will be graded as Novice, Advanced Trader, Experienced Trader or Master Trader.

What are Leading Indicators?

 

 Leading indicators are indicators that usually change before the economy as a whole changes

 Leading Indicators are economic signals that clearly indicate future directions of an economy in expansion

 Leading Indicators are tools used by the technician in order to develop commodity prices.

 Leading Indicators are only available to funds manager

A higher than expected retail sales should be taken as?

 Positive for the currency, bearish for the bond market, but favorable for the stock market, particularly retail stocks.

 Negative for the currency, bullish for the bond market, but favorable for the stock market, particularly producer stocks.

 Negative for consumer and a positive for the goverment

 Increase the value of a currency against goods exporting countries

Which of the following are considered Coincident Indicators ?

 

 Stock Market Returns, Average Weekly Hours and Index of Consumer Expectations

 Gross Domestic Product, Manufacturing and Retail sales

 Consumer Price Index, Interest Rates and Gross Domestic Product

 Unemployment, Consumer Price Index and interest rates

What is Inflation?

 

 The percentage amount which indicate that a prodcut is over-price

 A process of continuously rising prices or equivalently, of a continuously increasing value of money.

 A process of continuously falling prices

 Inflation is a general increase in the overall price level of the goods and services in the economy

Which of the following is a index not used to measure inflation?

 

 Producer Price Index

 Consumer Price Index

 Leading Economic Index

 Gross Domestic Product Deflator

Why is the unemployment rate is a Lagging Indicator?

 

 Because employment tends to increase after the economy has.

 Because unemployment improve as the economy does.

 Unemployment is not considered a Lagging Indicator

 Unemployment levels decrease before economic improvement

A lower than expected GDP should be taken as a?

 

 As it is

 Neutral

 Negative

 Positive

Which of the following are considered Lagging Indicators ?

 

 Unemployment, Consumer Price Index, interest rates

 Stock Market Returns, Average Weekly Hours, Index of Consumer Expectations

 Net Business Formation, Share Prices, Employment

 Interest Rates, Unemployment, Building Permits

What does ZEW Economic Sentiment Index measures?

 

 The level of optimism that analysts have about current economic situation and expected economic developments for the next 6 months.

 The expected economic developments for the next 6 months.

 The level of optimism that analysts have about current economic situation

 The optimism that analysts have about their economic situation

A CPI index of 110 means?

 

 

 That there has been a 10 percent decrease in price since the index reference period

 That there has been a 10 percent increase in price since the index reference period

 That the index is over the 100 percent level set by the Federal Reserve

 The index over 100 indicates an economy in trouble

In the US, which index is the “Official CPI” reported in the media?

 

 Consumers Special Electronic Items

 All Items Consumer Price Index for All Urban Consumers

 All Items including Petrol Prices Index

 The Index for new vehicles, less food and energy

The Office for National Statistics (ONS) releases official statistics for which country?

 

 United Kindom

 Australia

 South Africa

 New Zealand

Which of the following are considered Leading Indicators ?

 

 Stock Market Returns, Average Weekly Hours, Index of Consumer Expectations

 Moving Average, Moving Average Convergence Divergence, Momentum Indicators

 Gross Domestic Product, Employment Levels, Retail Sales

 Consumer Price Index, Interest Rates, Gross Domestic Product

What is the most likely reaction during a “good” economic conditions if the last CPI reading is lower than expected?

 

 Markets reaction depend upon general economic conditions

 It will be taken as a negative for the country’s currency; bond and equity markets will fall

 Equity and bond markets will rally

 Forex, Equity and Future markets will rally

What does Consumer Price Index (CPI) measures?

 

 Is the meta-measurement criteria of valued products

 The change in the price of goods and services experienced by consumers in their day-to-day living expenses

 The number of quarterly change in the CPI

 The change in consumer satisfaction with their living expenses

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Question 1 of 15

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