Kuroda Says BOJ ETF Purchases Are to Reduce Risk Premium

Kuroda Says BOJ ETF Purchases Are to Reduce Risk Premium

Assessment

Interactive Video

Business

University

Hard

Created by

Wayground Content

FREE Resource

The video discusses the Bank of Japan's strategy of purchasing ETFs to reduce risk premiums and stimulate investment. The aim is not to raise stock prices but to encourage firm investments by lowering risk premiums. The strategy has been successful, with increased investments, but further expansion is deemed unnecessary at this stage.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary focus of the Bank of Japan's ETF purchases?

To increase stock prices

To reduce risk premium

To control inflation

To stabilize currency exchange rates

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is reducing the risk premium important for companies?

It lowers interest rates

It increases stock prices

It stabilizes the economy

It encourages companies to invest more

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the composition of the ETFs purchased by the Bank of Japan?

Bonds listed on the Tokyo exchange

Commodities listed on the Tokyo exchange

Stocks listed on the Tokyo exchange

Real estate listed on the Tokyo exchange

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been the result of the Bank of Japan's strategy to reduce risk premium?

Decreased company investments

Lower stock prices

Increased company investments

Higher interest rates

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current stance of the Bank of Japan regarding the expansion of the ETF purchase program?

They plan to reduce the purchases

They plan to expand it significantly

They see no need to expand it further

They are undecided about its future