Economic Impact of the Ukraine War Quiz

What has led to major global price hikes for food and energy?

• Sanctions on Russia and Ukraine

• Increased production in Russia and Ukraine

• Decreased demand for commodities

• Political stability in emerging markets

Which commodity has reached record prices due to the drop in supply from Russia and Ukraine?

• Wheat

• Cotton

• Gold

• Soybeans

Who stands to benefit from rising proceeds of commodity exports?

• Georgia

• Gulf economies

• Egypt

• Poland

What is the likely impact of the price rises on inflation in emerging and advanced economies?

• Decrease in inflation

• No impact on inflation

• Increase in inflation

• Stagnation of inflation

What is the usual response of central banks when countries face high inflation?

• Lower interest rates

• Keep interest rates unchanged

• Print more money

• Raise interest rates

What could lead investors to move capital away from emerging markets and towards advanced economies?

• Decrease in geopolitical risk

• Decrease in interest rates in advanced economies

• Increase in geopolitical risk

• Stable economic conditions in emerging markets

What could result from emerging market currencies depreciating?

• No impact on inflation

• Increase in inflation

• Stagnation of inflation

• Decrease in inflation

What could raise the cost of borrowing across emerging markets?

• Increase in geopolitical risk

• Stable economic conditions in emerging markets

• Decrease in interest rates in advanced economies

• Depreciation of emerging market currencies

What will policymakers need to navigate between managing inflation and debt levels?

• Supporting vulnerable households

• Increasing interest rates

• Reducing debt levels

• All of the above

What could be especially challenging for countries that had high debt even before the war?

• Navigating tradeoffs between managing inflation and debt levels

• Supporting vulnerable households

• Reducing debt levels

• Managing inflation