CaixaBank Becomes Spain’s Biggest Bank by Assets

Reprinted with permission from the BBC (bbc.co.uk)

What is the name of the bank that CaixaBank bought to secure this title?
Which bank has a majority stake in CaixaBank, and how large is this stake?
What is the economic context of this?
What has the government done to make mergers like this possible?
1. They have amended the laws on merging banks
2. They are offering cash-incentives for these mergers
3. They are threatening unmerged banks with legal penalties
4. They are enacting laws that force smaller banks to merge with larger banks
With the merger completed, CaixaBank will be the largest in all BUT which of the following regions?
1. Galicia
2. Catalonia
3. Andalusia
4. Canary Islands
Why does the bank say this merger is necessary?
1. Because they are desperate for money
2. They see it as a way to stabilize Spain’s shaky economy
3. To allow Spain to compete with other countries
4. To prevent the closing of the bank and thus prevent massive layoffs
What are the current government’s projections for 2012?
1. They plan to increase the GPD of Spain by 8.51%
2. They plan to increase the employment rate by 2%
3. They plan to decrease the unemployment rate by 5.3%
4. They plan to cut the national deficit down by 5.3%
What is significant about Spain’s unemployment rate?
1. There is nothing significant about Spain’s unemployment rate
2. It is the lower in the European Union
3. It is the highest in Europe
4. Less than 1% of Spain’s workers are unemployed
Vocabulary: Define the following words.

asset
generate
stake
deficit
austerity