Bear market, credit crunch, stagflation - economic gloom and doom has have become such a major issue for households that financial terms have entered mainstream conversation. Test yourself on bear markets, sub-primes and stagflation.
Bear market, credit crunch, stagflation - economic gloom and doom have become such a major issue for households that financial terms have entered mainstream conversation. Test yourself on bear markets, sub-primes and stagflation.
1.) Midweek quiz: Economic terms
1.) Midweek quiz: Economic terms
A bear market is one in which shares have fallen to 20% below their previous peak. Why "bear"?
Bear skin
Bear baiting
Bear hibernation
2.) Midweek quiz: Economic terms
Last week "credit crunch" was added to the Concise Oxford English Dictionary. The definition?
Last week "credit crunch" was added to the Concise Oxford English Dictionary. The definition?
"A squeeze on mortgages and loans"
"A severe shortage of money or credit"
"An economic condition whereby investment capital is difficult to obtain"
"A squeeze on mortgages and loans"
"A severe shortage of money or credit"
"An economic condition whereby investment capital is difficult to obtain"
2.) Midweek quiz: Economic terms
A bear market is one in which shares have fallen to 20% below their previous peak. Why "bear"?
Bear skin
Bear baiting
Bear hibernation
3.) Midweek quiz: Economic terms
3.) Midweek quiz: Economic terms
The opposite of a bear market is a bull market, hence this statue near Wall Street in New York. What do superstitious traders do for luck?
The opposite of a bear market is a bull market, hence this statue near Wall Street in New York. What do superstitious traders do for luck?
Rub it
Climb on top
Bow to it
Rub it
Climb on top
Bow to it
4.) Midweek quiz: Economic terms
4.) Midweek quiz: Economic terms
When Bank of England Governor Mervyn King said the "nice" decade was over, what was he referring to?
Bank of England Governor Mervyn King has said the "nice" decade is over. What does this stand for?
Non-inflationary consistent expansion
Non-inflationary constant elevation
Non-inflationary consumer expenditure
Non-inflationary consistent expansion
Non-inflationary constant elevation
Non-inflationary consumer expenditure
5.) Midweek quiz: Economic terms
5.) Midweek quiz: Economic terms
Is the UK currently in a period of "negative growth"?
Is the UK currently in a period of "negative growth"?
Yes
No
Yes
No
6.) Midweek quiz: Economic terms
6.) Midweek quiz: Economic terms
The UK economy is technically in recession when it experiences two successive quarters of negative growth. True or false?
The UK economy is technically in recession when it experiences two successive quarters of negative growth. True or false?
True
False
True
False
7.) Midweek quiz: Economic terms
7.) Midweek quiz: Economic terms
How many "full-blown" recessions - when there is an absolute decline in the economy year on year - have there been since World War II?
How many "full-blown" recessions - when there is an absolute decline in the economy year on year - have there been since World War II?
Three
Four
Five
Three
Four
Five
8.) Midweek quiz: Economic terms
8.) Midweek quiz: Economic terms
What is the name of the process whereby loans are transformed into units that can be sold - such as selling the house on which you have a mortgage?
What is the name of the process whereby loans are transformed into units that can be sold - such as selling the house on which you have a mortgage?
Transformatisation
Assetisation
Securitisation
Transformatisation
Assetisation
Securitisation
9.) Midweek quiz: Economic terms
9.) Midweek quiz: Economic terms
Who coined the term "stagflation" to describe a state of high inflation and stagnating demand?
Who coined the term "stagflation" to describe a state of high inflation and stagnating demand?
Former Chancellor Iain Macleod
The Financial Times
Adam Smith, pioneering economist
Wall Street Journal
Former Chancellor Iain Macleod
The Financial Times
Adam Smith, pioneering economist
Wall Street Journal
10.) Midweek quiz: Economic terms
10.) Midweek quiz: Economic terms
Sub-prime lending in the US is any loan that fails to meet regulations set out by Freddie Mac and Fannie Mae. Who are or were they?
Sub-prime lending in the US is any loan that fails to meet regulations set out by Freddie Mac and Fannie Mae. Who are or were they?
Former heads of the Federal Reserve
US Treasury secretaries
Acronyms for government-sponsored enterprises
Former heads of the Federal Reserve
US Treasury secretaries
Acronyms for government-sponsored enterprises
Answers
Answers
Although
the precise definition is not clear, it is thought to come from bearskin trading. The Oxford English Dictionary says "bear" was first applied to stock in the 18th Century and the term "bearskin jobber" makes it probable that its use originated in the proverb "to sell the bear's skin before one has caught the bear".
It's
defined as "a severe shortage of money or credit" in the concise version of the OED.
They
rub its testicles, nose and horn for good luck.
It's non-inflationary consistent expansion, representing a decade where inflation had remained low and stable, and growth had been strong.
No. The UK economy grew by 0.3% on a quarterly basis between January and March. Weak by recent standards but not declining.
It's true, technically. But it is quite possible to have two quarters of negative growth and another couple of quarters of decent growth, so the economy actually grows year on year. Commentators usually refer to this as a mild recession.
According to the Office of National Statistics, there have been full-blown or severe recession in five years since 1945 - these were 1974, 1975, 1980, 1981 and 1991.
It's securitisation. And the OED suggests the term was first used in print in 1982.
It was Macleod in 1965 while the Conservatives were in opposition.
These are acronyms. Fannie Mae is the Federal National Mortgage Association and Freddie Mac is the Federal Home Loan Mortgage Corporation.
It's
defined as "a severe shortage of money or credit" in the concise version of the OED.
Although
the precise definition is not clear, it is thought to come from bearskin trading. The Oxford English Dictionary says "bear" was first applied to stock in the 18th Century and the term "bearskin jobber" makes it probable that its use originated in the proverb "to sell the bear's skin before one has caught the bear".
They
rub its testicles, nose and horn for good luck.
It's non-inflationary consistent expansion, representing a decade where inflation had remained low and stable, and growth had been strong.
No. The UK economy grew by 0.3% on a quarterly basis between January and March. Weak by recent standards but not declining.
It's true, technically. But it is quite possible to have two quarters of negative growth and another couple of quarters of decent growth, so the economy actually grows year on year. Commentators usually refer to this as a mild recession.
According to the Office of National Statistics, there have been full-blown or severe recession in five years since 1945 - these were 1974, 1975, 1980, 1981 and 1991.
It's securitisation. And the OED suggests the term was first used in print in 1982.
It was Macleod in 1965 while the Conservatives were in opposition.
These are acronyms. Fannie Mae is the Federal National Mortgage Association and Freddie Mac is the Federal Home Loan Mortgage Corporation.
