Why Turkey's Credit Was Downgraded Deeper Into Junk

Why Turkey's Credit Was Downgraded Deeper Into Junk

Assessment

Interactive Video

Business

University

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

The video discusses the volatility of the Turkish Lira, highlighting its significant depreciation against the dollar and the measures taken by the central bank to stabilize it. It explores the challenges faced by foreign investors due to currency risks and the impact of Turkey's interest rate policies. The discussion also covers the role of credit rating agencies and their influence on Turkey's market, emphasizing the disconnect between ratings and market realities.

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5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was one of the main reasons for the Turkish lira's recovery?

Backdoor measures to tighten liquidity

An influx of foreign investments

A significant increase in exports

A decrease in global oil prices

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the late liquidity window used for in Turkey's economic strategy?

To stabilize the stock market

To attract foreign direct investment

To provide emergency funds to banks

To manage interest rates without a formal hike

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might foreign investors be hesitant to invest in Turkey?

Political instability

Currency risk and difficulty in hedging

High inflation rates

Lack of technological infrastructure

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was surprising about Moody's recent action regarding Turkey's credit rating?

They upgraded Turkey's rating unexpectedly

They cut the rating by two notches

They followed Standard & Poor's but remained one notch above

They declared Turkey's economy as stable

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the current state of Turkey's sovereign U.S. dollar-paid debt?

It is stable and secure

It is improving rapidly

It is not quite at distressed levels

It is at distressed levels

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