The Biggest Investor in the U.S. Is...the U.S.

The Biggest Investor in the U.S. Is...the U.S.

Assessment

Interactive Video

Business

University

Hard

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The video explores the role of central banks in the bond market, particularly focusing on the Federal Reserve's actions during the global financial crisis. It explains how central banks, through quantitative easing, bought government bonds to lower interest rates and stimulate economic activity. The video also discusses the significant expansion of central banks' balance sheets and the potential challenges they face in reducing bond holdings without disrupting global markets.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which entity is suggested as a major holder of government debt, contrary to common belief?

China

Federal Reserve

Japan

European Union

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary action taken by central banks during the financial crisis to stabilize the economy?

Raising interest rates

Implementing quantitative easing

Increasing taxes

Reducing government spending

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main goal of quantitative easing?

To increase consumer savings

To increase government debt

To reduce inflation

To boost asset prices and lower interest rates

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which central banks have significantly increased their balance sheets due to quantitative easing?

Federal Reserve, European Central Bank, and Bank of Japan

People's Bank of China and Swiss National Bank

Bank of England and Reserve Bank of India

Reserve Bank of Australia and Bank of Canada

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the concern regarding the reduction of bond holdings by central banks?

Strengthening the US dollar

Decreasing government debt

Increasing inflation rates

Causing a surge in global markets