Transcript Quiz - Kleykamp in Taiwan

A Simple In-Class Quiz
Day 1 Presentation
20 Multiple Choice Questions with Answers
_____ #1. The four main economic regions (US, Euro Area, Japan,
and China) taken together are about ______ of the world
economy, based on PPP values.
a. 30%
b. 50%
c. 70%
d. 80%
Using the EU (which includes
the UK and other countries not
in the Euro Area) we find that
the percentage is 56%
according to the IMF 2016
estimates. Thus, the figure
50% is the best choice here.
#1. Answer: (b) is best choice
____ #2. Which of the following best characterizes US
growth over the few quarters?
a. stable growth at 2% YoY
b. rising growth at over 2.5%
c. falling growth at around 1.5%
d. choppy growth going up and down from 4% to 1%
#2. Answer: (a) is the best choice
____#3. Recently, what are the long and short run potential
growth rates, respectively, in the US ?
a. 1.5%
2.5%
b. 2.0%
1.6%
c. 2.0%
2.0%
d. 1.6%
1.6%
#3. Answer: (b) is the best choice
____#4. US YoY inflation has been
a. right on the Fed’s 2% target
b. negative with falling prices
c. very unstable ranging from 5% to as low as -1%
d. very stable at about 1%
#4. Answer: (d) is the best choice
____#5. The US Federal Government Deficit to GDP
ratio was -12% in 2009, but there is “fiscal space”
now since the ratio is currently ______.
a. 2.5%
b. 4.8%
c. 7.2%
d. 8.1%
#5. Answer: (a) is the best choice
____#6. Which of the following best describes annual YoY
growth in the Euro Area for the past couple of years?
a. very fast growth above 3% per year
b. choppy growth ranging from 2.5% to -1%
c. declining growth around 1.2%
d. rising growth from 0.6% to 1.7%
#6. Answer: (d) is the best choice
____#7. Euro Area youth unemployment is falling, but
remains relatively high at about ________ ?
a. 10%
b. 14%
c. 17%
d. 20%
#7. Answer: (d) is the best choice
____#8. The past few months shows that the Euro Area has
a. above target inflation rates > 2%
b. low and stable core inflation of about 1.0%
c. essentially deflation and very serious
d. high and choppy inflation between 6% and 3%
#8. Answer: (b) is the best choice
____#9. Which country is NOT currently using a NIRP, that
is, a negative interest rate policy ?
a. Sweden
b. the Euro Area
c. Japan
d. the US
There's only one country in the world where
negative interest rates are working - Sweden
#9. Answer: (d) is the best choice
____#10. The Euro Area’s main economic problem is
a. too much investment uncertainty
b. one monetary policy, but no single fiscal policy
c. a lack of labor resources
d. declining productivity growth
...the lesson from the last five years is that
those countries that use the euro are paying a
heavy price for the lack of a common system
for transferring resources from one part of the
single-currency area to another. There is one
currency and one interest rate, but there is no
fiscal union to stand alongside monetary union
– the Guardian, Feb 2016
#10. Answer: (b) is the best choice
____#11. The 3rd arrow in the original Abenomics is
a. monetary policy
b. fiscal policy
c. exchange rate policy
d. institutional and regulatory reform
“The “third arrow” of Abenomics —
reforms to make the economy more
productive — is barely a work in
progress...”
— Japan Times, Feb 2016
#11. Answer: (d) is the best choice
____#12. Which of the following would best describe Japan’s
annualized growth performance recently?
a. a sustained rise to about 2%
b. very cyclical and declining amplitudes
c. depression levels of negative growth
d. very stable and level growth at 1%
#12. Answer: (b) is the best choice
____#13. The Japanese unemployment rate over the past
year (2015 to 2016) has been
a. extremely choppy up and down in the range 1% to 4%
b. stable in the range 3.1% – 3.4%
c. rising quickly from 2.4% to 3.2%
d. falling from a high of 5% to 1.8%
#13. Answer: (b) is the best choice
____#14. Japan’s central bank has been using a QQE policy
to stimulate its aggregate demand. This QQE
policy involves
a. buying only government bonds
b. buying foreign government bonds
c. buying private sector securities (ETFs and J-REITs)
d. buying BOJ issued securities
...
b) The Bank will purchase exchange-traded funds (ETFs) and
Japan real estate investment trusts (J-REITs) so that their
amounts outstanding will increase at annual paces of about
3 trillion yen4 and about 90 billion yen, respectively.
c) As for CP and corporate bonds, the Bank will maintain
their amounts outstanding at about 2.2 trillion yen and
about 3.2 trillion yen, respectively
ꟷ Bank of Japan "Quantitative and Qualitative
Monetary Easing with a Negative Interest Rate” January 29,
2016
#14. Answer: (c) is the best choice
____#15 Japan’s YoY inflation rate for the most recent few
months has been
a. negative (deflation)
b. positive and rising (inflation)
c. positive and falling (disinflation)
d. very stable at 2% annually (inflation)
#15. Answer: (a) is the best choice
____#16. According to state statistics, China’s annual growth
is falling, but may have stabilized at its most recent
level of _____
a. 7.2%
b. 6.7%
c. 6.2%
d. 5.8%
#16. Answer: (b) is the best choice
____#17. Recently, China’s inflation rate can be
characterized as
a. quickly rising
b. slowly falling
c. stable, with small fluctuations up and down
d. highly variable up and down movements
#17. Answer: (c) is the best choice
____#18. Which statement below is NOT true about
the Chinese economy?
a. China’s SOEs are very inefficient and need reform
b. China’s rebalancing efforts are not working well
c. China’s unemployment rate is not a reliable statistic
d. Since 2014, the RMB has been rising against the USD
#18. Answer: (d) is the best choice
____#19. The strong relation between China’s imports &
exports changed radically beginning in which year?
a. 2011
b. 2012
c. 2013
d. 2014
Beginnings of the Red Supply Line ?
#19. Answer: (d) is the best choice,
however 2010 also saw a change
____#20. The concept of China’s rebalancing means changing
demand from investment and exports to ________
a. consumption and government services
b. imports and energy industries
c. manufacturing and social services
d. housing and commercial building of structures
Gross Capital Formation as % of GDP
#20. Answer: (a) is the best choice, but it
doesn’t seem to be working