Investors Keep Shrugging Off Risk, Says State Street

Investors Keep Shrugging Off Risk, Says State Street

Assessment

Interactive Video

Business, Social Studies

University

Hard

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The video discusses the unprecedented policy response to the current market crisis, highlighting zero interest rates and quantitative easing. It examines the fiscal policy measures, such as the Cares Act, and their impact on the economy, noting potential challenges like the fiscal cliff and high unemployment. The discussion extends to the stock market's resilience despite negative economic indicators, emphasizing the narrow rally in certain stocks. The video also explores the role of monetary policy and the performance of assets like gold, questioning the sustainability of continuous money printing.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason investors are participating in the equity markets despite the risks?

Low inflation rates

The TINA trade

Strong economic growth

High interest rates on bonds

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a significant component of the US fiscal response to the pandemic?

Reduction in government spending

The CARES Act

Increased tariffs

Tax hikes

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential consequence of not extending enhanced unemployment benefits?

Increased consumer spending

Higher stock market gains

A fiscal cliff

Lower unemployment rates

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key concern regarding the current stock market rally?

It is driven by a wide range of stocks

It is based on high interest rates

It is supported by strong economic fundamentals

It is concentrated in a few stocks

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What asset is considered a hedge against the debasement of fiat currencies?

Gold

Cryptocurrency

Real estate

Bonds

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might some be skeptical about continuous monetary stimulus?

It leads to high interest rates

It reduces government debt

It can cause currency debasement

It increases employment

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the best performing asset over the last couple of years according to the transcript?

Bonds

Gold

Real estate

Technology stocks