Uncertainty over the EU Referendum causing Capital Flight from the UK

Uncertainty over the EU Referendum causing Capital Flight from the UK

Assessment

Interactive Video

Business, Social Studies

University

Hard

Created by

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FREE Resource

The video discusses investor concerns about Brexit, highlighting a significant capital outflow from UK assets, the largest since 2009. While the remain camp views this as evidence of potential economic harm, the leave camp dismisses it as a scare tactic. The video also notes that market concerns are more focused on the US elections than Brexit. The analysis reveals that £65 billion has been moved out of UK assets since the referendum was called, raising questions about the long-term economic impact.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the initial reaction of investors to the possibility of Brexit?

Investors increased their investments in UK assets.

Investors shifted a large amount of cash out of UK assets.

Investors started investing more in the EU.

Investors were indifferent to the Brexit news.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main concern for the markets according to the transcript?

The economic impact of Brexit.

The potential election of Donald Trump in the US.

The stability of the EU.

The rise of new economic powers in Asia.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much money was pulled out of UK-based sterling assets in March alone?

£65 billion

£59 billion

£1.3 million

£6 billion

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What historical event is the current capital outflow compared to?

The Brexit referendum

The US election of 2016

The financial crash of 2008

The financial crash of 2009

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the remain camp's argument regarding the economic consequences of Brexit?

The economic prospects are bright outside the EU.

There will be no economic consequences.

There may be negative consequences, and they now have figures to support this.

The economy will improve significantly.