BOE Expands Bond-Buying Scope to Avert 'Fire Sale'

BOE Expands Bond-Buying Scope to Avert 'Fire Sale'

Assessment

Interactive Video

Business

University

Hard

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The video discusses the recent market reactions to inflation-linked notes and the Bank of England's interventions to stabilize the market. It highlights the uncertainty in the market and the need for more concrete fiscal plans from the government. The discussion also touches on the role of fiscal policy in achieving market stability and the challenges faced by the Bank of England in providing a backstop.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary cause of the recent bond sell-off discussed in the video?

Rising interest rates

Inflation-linked notes

Government spending cuts

Decreasing stock market

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main concern of the markets regarding the Bank of England's interventions?

Uncertainty beyond the October 14th deadline

Insufficient funding

High interest rates

Lack of transparency

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the potential extreme action the Bank of England might take according to Dan Hanson?

Increase interest rates

Withdraw from the market

Stay in the market for longer

Cut government spending

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the Bank of England's role considered limited in solving the market instability?

It lacks sufficient funds

It is not responsible for fiscal policy

It has no control over interest rates

It cannot influence inflation

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the video, what is the ultimate solution to market instability?

Fiscal policy

Reduced government spending

Monetary policy

Increased taxation