Why More Central Banks Came Back Into the Euro in 2020

Why More Central Banks Came Back Into the Euro in 2020

Assessment

Interactive Video

Business, Social Studies

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the renewed interest of global central banks in the euro, highlighting that 38% of issuances were bought by these banks in 2020. Key reasons include increased trust in Europe, adaptation to negative yields, and interest from emerging markets. The video also explores the impact of new EU debt issuance on demand and investor appetite for long-term bonds. It concludes with a positive outlook for 2021, noting that increased supply may drive demand and that financing costs have decreased despite rising debt levels.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was one of the main reasons for the renewed interest of central banks in euro debt in 2020?

The positive fiscal response to the COVID-19 crisis.

Central banks were looking for higher yields.

The euro breakup story re-emerged.

The European Central Bank increased interest rates.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did central banks' purchasing behavior change in 2020 compared to 2019?

They stopped buying euro-denominated debt.

They bought twice as much European government debt.

They bought less European government debt.

They focused on short-term bonds only.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which group is primarily interested in long-term euro debt due to solvency regulations?

Central banks

Hedge funds

Insurance companies

Retail investors

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one reason long-term euro bonds are popular among investors?

They provide positive yields.

They offer negative yields.

They are risk-free.

They have no maturity date.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did Japanese investors react to Europe's response to the COVID-19 crisis?

They were disappointed with the slow response.

They were surprised by the fast response.

They were indifferent to the changes.

They decided to invest more in the US dollar.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What impact did rising debt levels have on financing costs in Europe?

Financing costs were not affected.

Financing costs increased significantly.

Financing costs remained unchanged.

Financing costs decreased in some parts of Europe.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected market condition for 2021 according to the speaker?

Unpredictable and risky

Challenging and volatile

Stable and optimistic

Declining and pessimistic