BOJ's Kuroda Says Firms Remain Cautious on Spending

The video discusses the weak momentum in business investment and corporate saving, particularly in Japan. Despite strong corporate earnings, firms remain cautious about increasing investments. The introduction of quantitative easing improved economic conditions, but corporate cash reserves continue to grow. Business investment focuses on maintenance rather than expansion. Wage growth is low, especially for full-time workers, despite a tight labor market. These trends suggest hesitancy in long-term commitments by firms.

What is the term used to describe the situation where firms have strong earnings but weak investment momentum?

• Investment paradox

• Corporate saving graph

• Earnings dilemma

• Profit conundrum

What economic policy was introduced in Japan four years ago to improve economic conditions?

• Fiscal tightening

• Quantitative and qualitative monetary easing

• Interest rate hikes

• Trade liberalization

Despite record high profits, why are firms hesitant to increase investment?

• Lack of available funds

• Uncertain economic conditions

• Cautious approach towards spending

• High interest rates

What has been the trend in business fixed investment in recent years?

• Rapid expansion

• Stable with no change

• Moderate increase focused on maintenance

• Significant decline

How does the wage growth of part-time workers compare to that of full-time workers?

• Full-time workers have faster wage growth

• Part-time workers have faster wage growth

• Both have similar wage growth rates

• Part-time workers have slower wage growth