UK Markets Turmoil: Can Truss Restore Calm?

The Bank of England intervened with quantitative easing to stabilize finances, while facing pressure to raise interest rates to curb inflation. The UK government, led by Liz Truss, is under pressure to reconsider tax cuts and manage spending without returning to austerity, despite criticism from the IMF. The situation highlights the tension between monetary and fiscal policies, with political and economic challenges at play.

What action did the Bank of England take to stabilize the financial system?

• Introduced new currency

• Lowered interest rates

• Restarted quantitative easing

• Increased taxes

What is the main reason for the pressure on the government to dismiss the chancellor?

• To show accountability for economic policies

• To improve international relations

• To address public dissatisfaction

• To make a political statement

What is the government's stance on the proposed tax cuts?

• They are considering increasing them

• They intend to proceed with them

• They have postponed them indefinitely

• They plan to cancel them

How did the International Monetary Fund respond to the UK's fiscal plans?

• They ignored the plans

• They praised the plans

• They offered financial support

• They criticized the plans

What challenge does the Prime Minister face regarding spending cuts?

• Improving international trade relations

• Reducing unemployment rates

• Increasing taxes to fund new projects

• Balancing economic needs with political promises