Chapter 9 - Article #3 Flashcards
What does the “Buttonwood” article primarily discuss?
A. The future of blockchain technologies.
B. Financial market trends and systemic risks.
C. Historical analysis of trade policies.
D. Environmental sustainability in business.
B. Financial market trends and systemic risks.
How does the article describe the role of monetary policy in 2020’s economic challenges?
A. It was entirely ineffective due to global instability.
B. It prevented a severe financial crisis by providing liquidity.
C. It contributed to inflation by expanding the money supply too quickly.
D. It was largely unnecessary as markets self-corrected.
B. It prevented a severe financial crisis by providing liquidity.
According to the article, which factor was most critical in stabilizing financial markets during the COVID-19 pandemic?
A. Rapid corporate innovation.
B. Government interventions and monetary stimulus.
C. Global cooperation between central banks.
D. Decreased reliance on fossil fuels.
B. Government interventions and monetary stimulus.
What historical example does the article compare to the financial responses in 2020?
A. The Great Depression of the 1930s.
B. The Panic of 1907.
C. The Dot-Com Bubble of the 1990s.
D. The Financial Crisis of 2008.
D. The Financial Crisis of 2008.
What is a key takeaway from “Buttonwood” regarding equity markets?
A. They always recover faster than bond markets.
B. Their resilience depends on central bank policies.
C. They remain unaffected by geopolitical tensions.
D. Their volatility is solely driven by speculative trading.
B. Their resilience depends on central bank policies.
What long-term concern about monetary easing is highlighted in the article?
A. It leads to immediate job losses.
B. It causes asset price bubbles.
C. It results in deflationary spirals.
D. It undermines global trade relations.
B. It causes asset price bubbles.
The “Buttonwood” article suggests that financial innovation often leads to what unintended consequence?
A. Increased government control over private firms.
B. Heightened systemic risks and market instability.
C. Better long-term growth for emerging markets.
D. Simplified regulatory compliance for banks.
B. Heightened systemic risks and market instability.
Why is the “Buttonwood” column named after a tree?
A. It symbolizes stability in global markets.
B. It refers to the origins of the New York Stock Exchange.
C. It represents environmental finance.
D. It is a metaphor for branching economic theories.
B. It refers to the origins of the New York Stock Exchange.
How does the article describe the impact of COVID-19 on wealth inequality?
A. It reduced inequality by creating universal economic opportunities.
B. It exacerbated inequality as asset holders benefited disproportionately.
C. It had no significant impact on wealth distribution.
D. It improved equality through targeted fiscal policies.
B. It exacerbated inequality as asset holders benefited disproportionately.
What lesson does the article draw from previous financial crises?
A. Deregulation is essential for market efficiency.
B. Traditional banks are no longer central to economic stability.
C. Crises are unavoidable and should not be managed.
D. Proactive intervention by governments can mitigate economic fallout.
D. Proactive intervention by governments can mitigate economic fallout.
