Global Economy Quiz

How does the text define the global economy?

• A single country’s financial system

• A network of economic activity connecting countries

• A system limited to trade agreements

• A system controlled entirely by the IMF

What made national economies more interdependent over time?

• Natural disasters

• Advances in transportation, communication, and technology

• Decreased international trade

• Political revolutions

Which of the following shows the interconnectedness of the global economy?

• Food prices in Indonesia affected by weather in Brazil

• Local farmers selling products in village markets

• A company hiring new employees

• A school exchange program

What is a financial crisis?

• A sudden rise in employment

• A collapse of confidence in financial institutions and rapid market decline

• An increase in trade opportunities

• A decision by governments to raise taxes

What was one effect of the Great Depression of the 1930s?

• It only affected the U.S. economy

• It created global prosperity

• It fueled political extremism and unemployment worldwide

• It ended the global economy

What triggered the 2008 global financial crisis?

• Climate change

• Risky lending and collapse of the U.S. housing market

• The rise of automation

• Increased globalization

How did globalization intensify the 2008 financial crisis?

• It limited trade

• It isolated economies from each other

• It spread the effects quickly across multiple regions

• It stopped investment in the U.S.

What is the IMF’s main role according to the text?

• Funding education projects

• Offering emergency loans to stabilize currencies

• Promoting political campaigns

• Reducing greenhouse gas emissions

What does the World Bank primarily focus on?

• Long-term development and poverty reduction

• Emergency loans to banks

• Stock market regulation

• Trade restrictions

What is a major criticism of the IMF and World Bank?

• They only work with wealthy nations

• They often impose strict conditions that may worsen inequality

• They refuse to lend money to countries in crisis

• They focus too much on climate change