Are Negative Rates Working Better Than Expected?

Are Negative Rates Working Better Than Expected?

Assessment

Interactive Video

Business, Life Skills

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the impact of negative interest rates, particularly in Japan and the US, and the unforeseen consequences of such policies. It highlights the challenges faced by pension funds and the distortion in risk-taking behavior. The European Central Bank's (ECB) actions, including potential further rate cuts and bond purchases, are examined in light of inflation expectations. The video also explores how economic uncertainty affects savings rates in the US and Europe. Finally, it questions the effectiveness of central bank interventions and the lack of fiscal policy support.

Read more

7 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main consequences of negative interest rates on pension funds?

Increased pension fund surpluses

Decreased pension fund deficits

Increased pressure on pension fund deficits

No impact on pension funds

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What action is the ECB considering to address low inflation expectations?

Cutting deposit rates

Raising interest rates

Increasing taxes

Reducing bond purchases

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might people save more in an economy with negative interest rates?

Because of lower taxes

Due to increased job security

Because of a message of caution and uncertainty

Due to higher wages

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a significant concern regarding job creation in the US?

Most jobs are in high-paid sectors

Job creation is not keeping up with population growth

A large percentage of jobs are in low-paid areas

There is a surplus of high-paid jobs

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential risk of central banks intervening in asset markets?

It leads to stable asset prices

It increases government debt

It encourages excessive risk-taking by investors

It reduces market liquidity

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of the ETF market does the Bank of Japan own?

75%

50%

25%

10%

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the G20's stance on fiscal intervention in the current economic climate?

There is no coordinated view on fiscal intervention

They have implemented fiscal intervention measures

They support coordinated fiscal intervention

They are against any fiscal intervention