Analytical question

40
Posted 28th Aug 2020Edited by:"smellyonion"
i cannot for the life of me decipher this answer to this question.
3533444.jpgThe only month in which the dollar performs better against the pound is September but it isnt an option.

Am i misinterpreting this?
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My guess is October
Tricky to say without knowing what 'perform better' means exactly. Is it financial jargon for a specific measurement?

My guess would be November. That's when there was a big increase against the pound and a fall against the Euro.
August.

Sept isn't an option so the answer is August.

It doesn't say only month, that is not the question.
Edited by: "Willy_Wonka" 28th Aug
October it has bar charts behind which seem to show higher levels/improvement
November?

Because the pound has got more expensive against the $ from the previous month, but the Euro has gone down.
Oops misread the question

August?

In August you get £0.10 more and .03 euros less in exchange for your dollar.
Edited by: "melted" 28th Aug
I think that I have come to the conclusion that the question is broken.

Fairly shocking that these are used for candidate pre-screening. There is no single month other than September inwhich the dollar buys you more pounds than euros.

Also agree that "better" is totally subjective.
Change of reasoning. November is the only month where the dollar improves against the pound but worsens against the euro.
Edited by: "Hacked" 28th Aug
smellyonion28/08/2020 19:25

I think that I have come to the conclusion that the question is broken. …I think that I have come to the conclusion that the question is broken. Fairly shocking that these are used for candidate pre-screening. There is no single month other than September inwhich the dollar buys you more pounds than euros.Also agree that "better" is totally subjective.



Month on month...

Feb
Mar Stronger against euro
Apr Stronger against both
May Stronger against both
June Weaker against both
July Stronger against both
August Stronger against euro
September Stronger against both
October Weaker against both
November Stronger against GBP
December Stronger against both
smellyonion28/08/2020 19:25

I think that I have come to the conclusion that the question is broken. …I think that I have come to the conclusion that the question is broken. Fairly shocking that these are used for candidate pre-screening. There is no single month other than September inwhich the dollar buys you more pounds than euros.Also agree that "better" is totally subjective.



It doesn't say "only month" it says "in which month" & gives you the options to choose from. So you must choose from the options.
Hacked28/08/2020 19:36

Month on month...FebMar Stronger against euroApr Stronger against bothMay …Month on month...FebMar Stronger against euroApr Stronger against bothMay Stronger against bothJune Weaker against bothJuly Stronger against bothAugust Stronger against euroSeptember Stronger against bothOctober Weaker against bothNovember Stronger against GBPDecember Stronger against both


The monthly change though seems a big assumption and you would expect it to be explicit in the question. If that's how it's meant to be answered, you're right.
I reckon May is the answer, assuming I have understood the question correctly, i.e. by comparing performance of each compared to the previous month. February can't be considered as we don't know the rate in January.

Be interested to know the answer.
smellyonion28/08/2020 19:41

The monthly change though seems a big assumption and you would expect it …The monthly change though seems a big assumption and you would expect it to be explicit in the question. If that's how it's meant to be answered, you're right.


Agree it is implied more than stated. Good job you don't have to show your reasoning, just pick an answer!
February?
Inflation rate of which country? For a question to be valid, all terms must be fully defined.
waynexyzxxx28/08/2020 19:51

February?


I slightly agree.

My fag packet calculations say Feb & Sept are best / worst (or maybe worst / best depending on how you interpret the question).
It's August. The only problem here is people who don't understand FX (or basic maths) November - the dollar falls against the pound but gains against the euro. The only month that happens.
Edited by: "A1RN" 28th Aug
A1RN28/08/2020 21:04

the dollar gains against the pound but falls against the dollar


Hacked28/08/2020 19:49

Agree it is implied more than stated. Good job you don't have to show your …Agree it is implied more than stated. Good job you don't have to show your reasoning, just pick an answer!


I think your reasoning may be the inverse. The change from October to November of the dollar to pound is a weakening of the dollar as you buy less pounds therefore the pound is stronger and the dollar is weaker.
Using the monthly currency values to calculate the percentage month-on-month gain for each month, USD performed better against GBP than it did against EUR in March, April, June, July, August, September and December. If the question is re-interpreted slightly as which month did USD gain against both EUR and GBP but performed better (gained more) against GBP than EUR, the only answer is June (7.2% gain against EUR versus 14.6% gain against GBP).
I can't work it out without US dollar table
The answer is February.

Exchange rates based on above table

February - EUR = $1.162 - GBP = $1.785 = 53.614% increase

March - EUR = $1.265 - GBP = $1.785 = 41.107%
April - EUR = $1.369 - GBP = $1.886 = 37.765%
May - EUR = $1.449 - GBP = $2.083 = 43.754%
June - EUR = $1.351 - GBP = $1.818 = 34.567%
July - EUR = $1.408 - GBP = $1.851 = 31.463%
Aug - EUR = $1.470 - GBP = $1.562 = 6.259%
Sep - EUR = $1.612 - GBP = $1.587 = 1.551%
Oct - EUR = $1.351 - GBP = $1.515 = 12.139%
Nov - EUR = $1.234 - GBP = $1.694 = 37.277%
Dec - EUR = $1.333 - GBP = $1.754 = 31.583%


So in the month of February, for every £1 you would get $1.78 but for every €1 you would only get $1.162. This means you would need an exchange rate of £1 = €1.78
Willy_Wonka28/08/2020 21:28

Comment deleted


How does that work?

If $1 = £0.50 then $1 = £0.25

The dollar is then weaker and the pound is stronger. It's lost half its value against the pound.
smellyonion28/08/2020 21:31

How does that work?If $1 = £0.50 then $1 = £0.25The dollar is then weaker a …How does that work?If $1 = £0.50 then $1 = £0.25The dollar is then weaker and the pound is stronger. It's lost half its value against the pound.



Ignore me. This is doing my head in.
Willy_Wonka28/08/2020 21:09


*falls against the euro. At least I can actually get the right answer (despite a mistype).
A1RN28/08/2020 21:04

It's November. The only problem here is people who don't understand FX (or …It's November. The only problem here is people who don't understand FX (or basic maths) November - the dollar gains against the pound but falls against the dollar. The only month that happens.


That's not the question. It says which month is the pound stronger than than the euro. You're basing your answer on a previous month which it isn't asking
A1RN28/08/2020 21:04

It's November. The only problem here is people who don't understand FX (or …It's November. The only problem here is people who don't understand FX (or basic maths) November - the dollar gains against the pound but falls against the euro. The only month that happens.


I think that you flopped a little bit.

The pound increases in value against the dollar from October to November so the dollar weakens. How does buying less pounds result in a stronger dollar?
MonkeyMan9028/08/2020 21:46

That's not the question. It says which month is the pound stronger than …That's not the question. It says which month is the pound stronger than than the euro. You're basing your answer on a previous month which it isn't asking


That's how currency, stocks etc work. That's how markets are measured, over time. A comparison of performance has to include two points in time. The Dow Jones/FTSE100 is measured on previous closing for the numbers that tick long CNBC and Bloomberg. The information given means it is by default from month to month.
Edited by: "A1RN" 28th Aug
A1RN28/08/2020 21:50

That's how currency, stocks etc work. That's how markets are measured, …That's how currency, stocks etc work. That's how markets are measured, over time. A comparison of performance has to include two points in time. The Dow Jones/FTSE100 is measured on previous closing for the numbers that tick long CNBC and Bloomberg. The information given means it is by default from month to month.It's November. I'm not wasting any more time commenting.


This isn't a question based on current markets. It's a stand alone question. The answer is February.
A1RN28/08/2020 21:50

That's how currency, stocks etc work. That's how markets are measured, …That's how currency, stocks etc work. That's how markets are measured, over time. A comparison of performance has to include two points in time. The Dow Jones/FTSE100 is measured on previous closing for the numbers that tick long CNBC and Bloomberg. The information given means it is by default from month to month.It's November. I'm not wasting any more time commenting.


I think that your head is upside down.


I'll buy your $1 for £0.0001 that's a mega strong dollar by your logic.
Edited by: "smellyonion" 28th Aug
Stand with my original answer. August
Only month £ increases & Euro decreases
smellyonion28/08/2020 21:55

I think that your head is upside down.I'll buy your $1 for £0.0001 that's …I think that your head is upside down.I'll buy your $1 for £0.0001 that's a mega strong dollar by your logic.



smellyonion28/08/2020 21:49

I think that you flopped a little bit.The pound increases in value against …I think that you flopped a little bit.The pound increases in value against the dollar from October to November so the dollar weakens. How does buying less pounds result in a stronger dollar?


It's August rather. Yes, dollar gained against the Euro, fell against the £ in November. August the other way round. I had the question the wrong way round twice. November would be the answer if the question was when did $ perform better against Euro than £.

I wouldn't be getting shirty when you're the one who had to ask the internet how to solve I may have slightly confused the question but I knew how to work it out!
MonkeyMan9028/08/2020 21:54

This isn't a question based on current markets. It's a stand alone …This isn't a question based on current markets. It's a stand alone question. The answer is February.


That make's no sense A currency's performance can only take place over time. The x axis on any currency chart is always a measurement of time. Seconds, years, weeks whatever but always time.
It's February. Btw it's not asking which month pound did better than euro so I would leave that out as it can confuse people.
A1RN28/08/2020 22:08

It's August rather. Yes, dollar gained against the Euro, fell against the …It's August rather. Yes, dollar gained against the Euro, fell against the £ in November. August the other way round. I had the question the wrong way round twice. November would be the answer if the question was when did $ perform better against Euro than £.I wouldn't be getting shirty when you're the one who had to ask the internet how to solve I may have slightly confused the question but I knew how to work it out!


That's a new word shirty.

When someone is mega confident and claims to be an expert in Forex, Dow Jones, derivatives, MACD indicators, they better damn make sure they get it right.
Edited by: "smellyonion" 28th Aug
A1RN28/08/2020 22:11

That make's no sense A currency's performance can only take place …That make's no sense A currency's performance can only take place over time. The x axis on any currency chart is always a measurement of time. Seconds, years, weeks whatever but always time.


You're looking beyond the question and over thinking it.
smellyonion28/08/2020 22:16

That's a new word shirty. When someone is mega confident and claims to be …That's a new word shirty. When someone is mega confident and claims to be an expert in Forex, Dow Jones, derivatives, MACD indicators, they better damn make sure they get it right.


Whilst mega confident (and in my humble opinion wrong) it's not great when you ask for help and then appear abrupt to someone offering their help / opinion.
AC-ZEP-GEN-DC28/08/2020 22:27

Whilst mega confident (and in my humble opinion wrong) it's not great when …Whilst mega confident (and in my humble opinion wrong) it's not great when you ask for help and then appear abrupt to someone offering their help / opinion.


I agree with you.

Having a bit of fun that may have been perceived wrongly.
I would say may. Both have gone down but less against dollar than previous month.
EndlessWaves28/08/2020 19:00

Tricky to say without knowing what 'perform better' means exactly. Is it …Tricky to say without knowing what 'perform better' means exactly. Is it financial jargon for a specific measurement?My guess would be November. That's when there was a big increase against the pound and a fall against the Euro.


Agree with that. 'Perform' may mean month on month percentage increase. No-one is talking about the inflation rate column either. The implication of it is that the currency it refers to has devalued in terms of what you can buy with it year on year. Is that column there just as a deliberate distraction?

I reckon there must be a missing introductory paragraph to the question. But I also suspect that the question is designed by an insider organisation and the right kind of 'cramming' will lead to the 'right type' of answer.
Hacked28/08/2020 19:36

Month on month...FebMar Stronger against euroApr Stronger against bothMay …Month on month...FebMar Stronger against euroApr Stronger against bothMay Stronger against bothJune Weaker against bothJuly Stronger against bothAugust Stronger against euroSeptember Stronger against bothOctober Weaker against bothNovember Stronger against GBPDecember Stronger against both


I think you're closest. But you're saying, stronger by any amount. What if 'perform' means 'percentage gain month on month'?
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