This is Britain's Secret Economic Crisis: The Gilt Destruction

This is Britain's Secret Economic Crisis: The Gilt Destruction

Assessment

Interactive Video

Social Studies, Business

11th Grade - University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the current financial crisis in the UK, focusing on the gilt market and its potential to cause an economic catastrophe. It explains what gilts are and their importance to pension funds. The video highlights the impact of rising interest rates and the government's growth plan, which led to market instability. The Bank of England's unprecedented intervention to stabilize the market is detailed, along with international reactions and political consequences for the UK government.

Read more

7 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What event has recently caused a financial crisis in the UK?

The rise of the euro

The crash of the pound against the US dollar

The increase in oil prices

The fall of the Chinese stock market

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are gilts more commonly known as?

Corporate bonds

Government bonds

Municipal bonds

Junk bonds

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are gilts considered low-risk investments?

Developed economies are unlikely to default on them

They are backed by gold

They have high interest rates

They are insured by private companies

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the main concern of the Bank of England regarding pension funds?

They were investing too much in stocks

They were not paying enough interest

They might collapse due to rising interest rates

They were not diversified enough

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What action did the Chancellor of the Exchequer take that affected the market?

Increased interest rates

Announced sweeping tax cuts

Introduced new trade tariffs

Reduced government spending

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the Bank of England's response to the government's fiscal event?

It reduced quantitative easing

It increased interest rates

It intervened in the financial markets

It issued new government bonds

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the International Monetary Fund's stance on the UK's tax cuts?

They supported the cuts

They believed the cuts would increase inequality

They had no opinion

They thought the cuts would boost the economy