Australian Global Financial Crisis MCQs with Answer

What year did the Australian Global Financial Crisis begin?

a) 2006
b) 2007
c) 2008
d) 2009
Answer: c) 2008
Which Australian Prime Minister was in office during the onset of the Global Financial Crisis?

a) Kevin Rudd
b) Julia Gillard
c) Tony Abbott
d) Malcolm Turnbull
Answer: a) Kevin Rudd
Which sector in Australia was most affected by the Global Financial Crisis?

a) Agriculture
b) Manufacturing
c) Mining
d) Healthcare
Answer: b) Manufacturing
Which major Australian bank faced a near-collapse during the Global Financial Crisis and was bailed out by the government?

a) Commonwealth Bank
b) ANZ Bank
c) National Australia Bank (NAB)
d) Westpac
Answer: c) National Australia Bank (NAB)
What economic event triggered the onset of the Global Financial Crisis in Australia?

a) Bursting of the housing bubble
b) Collapse of Lehman Brothers
c) Stock market crash
d) Subprime mortgage crisis in the US
Answer: d) Subprime mortgage crisis in the US
Which industry in Australia experienced a sharp decline due to reduced consumer spending during the Global Financial Crisis?

a) Retail
b) Tourism
c) Information technology
d) Real estate
Answer: a) Retail
What term describes the Australian government’s response to the Global Financial Crisis with the aim of stimulating the economy?

a) Economic Rejuvenation Plan
b) Fiscal Easing Initiative
c) Australian Recovery Package
d) Economic Stimulus Package
Answer: d) Economic Stimulus Package
Which of the following was NOT a measure taken by the Australian government to counter the effects of the Global Financial Crisis?

a) Cash handouts to households
b) Infrastructure spending
c) Tax cuts for high-income earners
d) Increased funding for schools
Answer: c) Tax cuts for high-income earners
Which Australian state was particularly affected by a decline in its housing market during the Global Financial Crisis?

a) New South Wales
b) Queensland
c) Victoria
d) Western Australia
Answer: b) Queensland
What impact did the Global Financial Crisis have on unemployment in Australia?

a) Unemployment decreased
b) Unemployment remained unchanged
c) Unemployment increased
d) Unemployment fluctuated but stabilized quickly
Answer: c) Unemployment increased
Which Australian industry was relatively less affected by the Global Financial Crisis due to continued demand from emerging economies?

a) Agriculture
b) Mining
c) Information technology
d) Healthcare
Answer: b) Mining
What was the name of the legislation introduced by the Australian government during the Global Financial Crisis to guarantee deposits in banks?

a) Financial Stability Act
b) Bank Guarantee Scheme
c) Deposit Protection Act
d) Financial Security Assurance
Answer: b) Bank Guarantee Scheme
Which international rating agency downgraded Australia’s credit rating during the Global Financial Crisis?

a) Moody’s Investors Service
b) Standard & Poor’s (S&P)
c) Fitch Ratings
d) DBRS Morningstar
Answer: b) Standard & Poor’s (S&P)
What was the approximate peak unemployment rate in Australia during the Global Financial Crisis?

a) 4%
b) 6%
c) 8%
d) 10%
Answer: b) 6%
Which Australian industry witnessed a decrease in demand for its products due to reduced international trade during the Global Financial Crisis?

a) Agriculture
b) Manufacturing
c) Tourism
d) Real estate
Answer: c) Tourism
Which of the following was NOT a measure implemented by the Reserve Bank of Australia (RBA) during the Global Financial Crisis?

a) Reduction of interest rates
b) Injection of liquidity into the financial system
c) Tightening of monetary policy
d) Purchase of government bonds
Answer: c) Tightening of monetary policy
What effect did the Global Financial Crisis have on the Australian dollar’s value against the US dollar?

a) It significantly increased
b) It remained stable
c) It significantly decreased
d) It experienced minor fluctuations
Answer: a) It significantly decreased
Which term describes the Australian government’s guarantee to support the borrowing of banks during the Global Financial Crisis?

a) Bank Bailout Program
b) Financial Institutions Assistance Scheme
c) Liquidity Enhancement Initiative
d) Wholesale Funding Guarantee Scheme
Answer: d) Wholesale Funding Guarantee Scheme
How did the Australian stock market (ASX) perform during the Global Financial Crisis?

a) It remained unaffected
b) It experienced a slight decline
c) It suffered a significant drop
d) It saw a notable increase
Answer: c) It suffered a significant drop
Which Australian state experienced a construction boom during the Global Financial Crisis due to government infrastructure spending?

a) New South Wales
b) Victoria
c) Queensland
d) South Australia
Answer: b) Victoria
Which major industry in Australia faced difficulties due to reduced access to credit during the Global Financial Crisis?

a) Retail
b) Agriculture
c) Real estate
d) Manufacturing
Answer: c) Real estate
What was the primary reason behind the decline in consumer confidence during the Global Financial Crisis in Australia?

a) Government policies
b) Job losses
c) Currency devaluation
d) High inflation rates
Answer: b) Job losses
Which Australian industry saw increased government spending on research and development to boost innovation during the Global Financial Crisis?

a) Agriculture
b) Healthcare
c) Information technology
d) Mining
Answer: c) Information technology
What term is used to describe the process by which the Australian government took ownership stakes in certain financial institutions during the Global Financial Crisis?

a) Nationalization
b) Government intervention
c) Corporate takeover
d) Bailout acquisition
Answer: a) Nationalization
Which Australian industry experienced a decline in demand for its products due to reduced consumer spending during the Global Financial Crisis?

a) Agriculture
b) Mining
c) Retail
d) Healthcare
Answer: c) Retail
Which Australian city was considered the epicenter of the Global Financial Crisis due to a decline in its real estate market?

a) Melbourne
b) Sydney
c) Brisbane
d) Perth
Answer: b) Sydney
What was the approximate duration of the Australian Global Financial Crisis?

a) 6 months
b) 1 year
c) 2 years
d) 3 years
Answer: c) 2 years
Which of the following was NOT a result of the Australian government’s Economic Stimulus Package during the Global Financial Crisis?

a) Increased household savings
b) Growth in consumer spending
c) Expansion of public infrastructure
d) Decline in government debt
Answer: d) Decline in government debt
What measure did the Australian government introduce to encourage spending and stimulate economic activity during the Global Financial Crisis?

a) Increase in income tax rates
b) Cash rebates for purchasing cars
c) Reduction in social welfare benefits
d) Imposition of higher tariffs on imports
Answer: b) Cash rebates for purchasing cars
What was the approximate amount of the Australian government’s Economic Stimulus Package during the Global Financial Crisis?

a) $10 billion
b) $30 billion
c) $50 billion
d) $100 billion
Answer: c) $50 billion
Which Australian state experienced a decline in its tourism industry due to the Global Financial Crisis?

a) New South Wales
b) Queensland
c) Victoria
d) South Australia
Answer: b) Queensland
Which economic term refers to the situation when the value of assets falls rapidly during the Global Financial Crisis?

a) Asset devaluation
b) Market collapse
c) Deflationary spiral
d) Asset price deflation
Answer: d) Asset price deflation
What term describes the Australian government’s temporary guarantee of wholesale funding for financial institutions during the Global Financial Crisis?

a) Liquidity Enhancement Scheme
b) Credit Guarantee Program
c) Financial Institutions Assistance Scheme
d) Wholesale Funding Guarantee Scheme
Answer: d) Wholesale Funding Guarantee Scheme
Which Australian industry faced decreased demand due to reduced consumer confidence during the Global Financial Crisis?

a) Information technology
b) Manufacturing
c) Healthcare
d) Real estate
Answer: d) Real estate
What term refers to the phenomenon where financial institutions are hesitant to lend to each other during the Global Financial Crisis?

a) Credit crunch
b) Liquidity crisis
c) Mortgage meltdown
d) Financial freeze
Answer: a) Credit crunch
Which Australian industry benefited from increased government spending on infrastructure projects during the Global Financial Crisis?

a) Agriculture
b) Tourism
c) Construction
d) Real estate
Answer: c) Construction
What term describes the situation where the Australian government injected funds into the economy to prevent a severe economic downturn during the Global Financial Crisis?

a) Quantitative easing
b) Fiscal expansion
c) Monetary tightening
d) Economic austerity
Answer: b) Fiscal expansion
Which Australian industry faced reduced funding for research and development during the Global Financial Crisis?

a) Agriculture
b) Healthcare
c) Information technology
d) Mining
Answer: a) Agriculture
What term refers to the situation where global trade declined significantly during the Global Financial Crisis?

a) Trade recession
b) Global trade downturn
c) Trade slump
d) Trade contraction
Answer: d) Trade contraction
Which Australian industry witnessed a decrease in demand due to reduced government spending during the Global Financial Crisis?

a) Healthcare
b) Education
c) Manufacturing
d) Information technology

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