What Does an Over Supply in Commodities Signal?

What Does an Over Supply in Commodities Signal?

Assessment

Interactive Video

Business

University

Hard

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The video discusses secular global stagnation, focusing on commodities and their correlation with the dollar and global growth. It highlights the impact of dollar appreciation and potential Fed rate hikes on commodity prices. The analysis extends to the Australian dollar, considering global factors like China's economy and the Reserve Bank of Australia's policies. The Fed's cautious approach to interest rate hikes is examined, emphasizing its influence on market speculation and economic stability.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been a significant factor in the decline of oil and commodity prices since 2014?

Increase in production costs

Decrease in global demand

Appreciation of the dollar

Reduction in supply

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key factor affecting the Australian dollar's value against the US dollar?

Japanese yen fluctuations

European Central Bank policies

China's economic performance

US inflation rates

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What recent change in Australia could influence the Australian dollar's value?

Change in the Reserve Bank of Australia's Governor

Rise in commodity exports

Increase in tourism

New trade agreements

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why does the Federal Reserve discuss potential interest rate hikes even if they are unlikely to occur soon?

To encourage foreign investment

To prevent excessive market speculation

To boost consumer confidence

To increase government revenue

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main challenge faced by the Federal Reserve in deciding on interest rate changes?

Controlling government spending

Maintaining market stability

Balancing inflation and unemployment

Managing international trade agreements