Six Step Plan for Successful BOJ Intervention

Six Step Plan for Successful BOJ Intervention

Assessment

Interactive Video

Business, Performing Arts

University

Hard

Created by

Quizizz Content

FREE Resource

The transcript discusses the Bank of Japan's (BOJ) need for decisive actions to effectively intervene in the market, especially after previous indecisive moves like adopting negative interest rates. It highlights the importance of clear communication to avoid market surprises and the potential triggers for currency intervention, such as significant yen movements. The discussion also touches on the psychological impact of currency levels and the BOJ's strategy to prevent a super strong yen.

Read more

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary reason the BOJ needs to appear decisive in its market interventions?

To maintain market confidence

To reduce inflation

To confuse the market

To increase interest rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was one of the main issues when the BOJ moved to negative interest rates?

It led to a weaker yen

It was well-communicated

It was perceived as a desperate measure

It had no impact on the market

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the market react to the BOJ's move to negative interest rates?

The equity market crashed

The yen strengthened unexpectedly

The yen weakened significantly

There was no significant reaction

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

According to the Japanese Finance Minister, what kind of currency movement might trigger BOJ intervention?

A two-day move of five yen in either direction

A one-day move of ten yen

A consistent strengthening of the yen

A weakening of the yen over a month

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What psychological impact does the exchange rate level of 100 yen to the dollar have?

It is seen as insignificant

It is considered a minor fluctuation

It is ignored by the market

It is viewed as a significant psychological barrier