Warm up

1. In economics, what is 'inflation'?

• A high unemployment rate.

• An economic recession

• A continuous decrease in the price of goods and services

• A continuous increase in the price of goods and services over time.

2. During an economic crisis, why do people often rush to buy gold?

• Because the price of gold is always stable in any situation.

• Because the price of gold rises quickly and provides high returns.

• Because gold is considered a safe asset that helps preserve value when currency loses value.

• Because gold is easier to convert into cash than other assets.

3. 3.What is 'public debt'?

• The total amount of money that a country's government has borrowed from domestic and foreign sources.

• The amount of money that central banks owe to other financial institutions.

• The amount of money that a country's government owes to private banks.

• The total amount of money that all individuals and businesses in a country owe.

The term 'economic bubble' is used to describe what?

• A sudden drop in the value of currency.

• The increase in the price of consumer goods due to inflation.

• A phase where the value of a certain asset increases in an irrational and unsustainable way.

• A period of sustainable and stable economic growth

How does the stock market typically react during an economic crisis?

• Stock indexes increase slightly and recover quickly.

• Stock indexes show little change and remain stable.

• Stock indexes rise sharply due to investor optimism.

• Stock indexes fall sharply and may collapse.

The 2008 global economic crisis began with the collapse of which sector?

• The real estate and mortgage lending market.

• The technology market.

• The gold market.

• The gold market.

What can a Central Bank do to stimulate the economy during a crisis?

• Increase taxes on businesses and consumers.

• Sell government bonds to reduce the money supply.

• Lower interest rates to encourage borrowing and spending.

• Raise interest rates to attract people to save money.