Turkey Inflation

What is identified as one of the main causes of economic challenges in Turkey, leading to pressure on the country's current account balance and volatility in the Turkish lira in the foreign exchange market?

• Reliance on Foreign Capital

• Energy Prices

• Falling Turkish Lira's Value

• Monetary Policy

How does reliance on foreign capital contribute to economic vulnerability in Turkey?

• Increases in energy prices

• Accumulation of external debt

• Decreased inflation

• Higher production costs

What effect does the increase in oil and gas prices have on Turkey's economy, according to the documentation?

• Decreased production costs

• Lower prices for goods and services

• Higher costs for businesses and consumers

• Reduced trade deficit

What impact does the falling value of the Turkish lira have on currency traders in Turkey, as mentioned in the documentation?

• Increased confidence in the economy

• Decreased concern about the state of the economy

• Growing concern about the state of the economy

• Stabilization of inflation

How much has the Turkish lira declined against the US dollar from 2018 to 2023, according to the documentation?

• 50%

• 60%

• 70%

• 80%

According to the Istanbul Planning Agency's survey, by what percentage did the cost of living in Turkey increase in December 2023 compared to December 2022?

• 58.13%

• 68.13%

• 78.13%

• 88.13%

Why might investors reduce their holding of Turkey assets, as mentioned in the documentation?

• High confidence in Turkey's economic stability

• Increased Foreign Direct Investment (FDI)

• Decreased inflation

• Lack of confidence in Turkey's economic stability

How does inflation impact fixed-income earners like retirees, according to the documentation?

• Increases the real value of pensions

• Has no effect on retirees

• Erodes the real value of pensions over time

• Provides a hedge against inflation

What is the average salary in Turkey in the year 2023, as per the April 2023 exchange rate?

• 84,000 TRY per year

• 94,000 TRY per year

• 104,000 TRY per year

• 114,000 TRY per year

Which policy measure involves central banks taking actions to reduce the money supply, increase interest rates, and promote price stability?

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Market Normalization

• Contractionary

  Monetary Policy