Turkısh Economy (ENG) - Uluslararası İlişkiler (İngilizce)

Ünite 1

Soru 1

Which statement about the abolition of sultanate and caliphate and proclamation of the Republic is true?

Caliphate had been abolished in 1922 just after the abolition of sultanate.

The abolition of Caliphate is followed by the abolishment of the Sultanate which is in 1921.

Following the proclamation of the Republic in 1923 the caliphate was abolished in 1924.

The abolition of Caliphate is followed by the abolishment of the Sultanate which is in 1922.

The foundation of Republic was proclaimed in 1923, after the abolition of the caliphate in 1921

Açıklama:

If your answer is wrong, please review the “Turkey’s Administration System, Geographic Location and Natural Resources” section.
Opening the parliament in Ankara in 1920, the abolition of the sultanate in 1921, the proclamation of the Republic in 1923 and the abolition of the caliphate in 1924 are milestones in the establishment of modern Turkey.

Doğru Cevap: C

Soru 2

Which statement on the presidential system accepted by Turkey is correct?

The transition to the presidential system was accepted with the referendum held in 2016

The first presidential and parliamentary elections were held in 2019

The post of the prime minister was removed, the relationship of ministers with parliament was terminated.

The new system in Turkey has three pillars; ministries (16), policy boards (9) and directorates (8).

Parliament and the judiciary are located within the executive structure.

Açıklama:

If your answer is wrong, please review the “Turkey’s Administration System, Geographic Location and Natural Resources” section.
With the referendum held in 2017, the transition to the presidential system was accepted. The presidential and parliamentary elections were held in 2018 and since then the new presidential government system has been in effect. The post of the prime minister was removed, the relationship of ministers with parliament was terminated and the president is the only authority as the sole executive. The new system in Turkey has four pillars; ministries (16), offices (4), policy boards (9) and directorates (8). Parliament and the judiciary are located outside the executive (Aliriza, 2018)

Doğru Cevap: C

Soru 3

Turkey is considered in the Middle East and North Africa (MENA), Asia and Europe. This categorization is based on which items listed below?

culture
history
genetic ancestry
economic ties
integration considerations

I, II,V

I, III, IV, V

I, II, III, IV, V

I, III, V

I, II, IV, V

Açıklama:

If your answer is wrong, please review the “Geographic Location and Regions” section.
Geographically north side of Marmara and Bosphorus is part of Europe. In international references, Turkey is considered in the Middle East and North Africa (MENA), Asia and Europe. This categorization is based on cultural, historical, and economic ties and integration considerations.

Doğru Cevap: E

Soru 4

Which statement below is wrong about Turkey's natural resources?

According to the annual amount of water available per capita in Turkey is a country facing water scarcity.

Turkey has a semi-arid climate characteristic.

Although Turkey is considered a rich country in terms of raw energy resources, metallic minerals are scarce

The second largest lake is Lake Tuz (Salt) in Central Anatolia at an altitude of 925 meters.

According to the surveys, the amount of current water potential can irrigate land technically and economically up to 8,5 million hectares.

Açıklama:

If your answer is wrong, please review the “Turkey’s Administration System, Geographic Location and Natural Resources” section.
The complex geological and tectonic structure of Turkey has led to the discovery of a wide variety of mineral deposits. Today, around 90 types of mines are produced in the world, while around 60 types of mines are produced in Turkey. Turkey is considered a rich country in terms of raw energy resources, such as some metallic minerals, lignite, and geothermal resources, and particularly in industrial raw materials. 2.5% of the world reserves of industrial raw materials; 1% of the coal reserves; 0.8% of the geothermal potential and 0.4% of metallic mineral reserves are located in Turkey. Boron minerals in Turkey form the first row as 72% of world reserves.

Doğru Cevap: C

Soru 5

The development of the Turkish economy is in parallel with the increase in energy needs.

Turkey is an energy-rich country, thus is not dependent on foreign energy sources.

Turkey can only meet twenty five percent of the primary energy needs with domestic production

As of 2017 almost a quarter of the total energy consumption happens in the industry.

Transportation is currently not a large portion of the total energy consumption in Turkey.

Which statements above on energy consumption in Turkey is correct?

I,III,IV

I,II,III,IV,V

II,III,IV,V

I,II,III,V

III,IV,V

Açıklama:

If your answer is wrong, please review the “Dependence on Foreign Energy Sources” section.
The development of the Turkish economy is in parallel with the increase in energy needs and Turkey is not an energy-rich country. Currently, natural gas, oil, and coal together have an 88% share in the total primary energy sources and in almost equal proportions.
According to the National Energy Balance Table, Turkey’s primary energy supply is 145.3 million tons of oil equivalent (toe). While 33.6 million of this is used in the cycle and energy sector, 111.7 million is realized as final energy consumption.
Turkey is a country dependent on foreign energy sources. The ratio of meeting the primary energy demand with foreign energy sources is 52% in 1990, 67% in 2000, 69% in 2010 and around 76% in 2017. Therefore, Turkey can only meet the primary energy needs with domestic production one in four. As the primary energy sources, the share of oil and gas is around 60% together. The external dependency rate in 2018 is 93,4% in oil and 99,2% in natural gas.
As of 2017, the share of cycle power plants in energy consumption is 23%. In energy consumption, shares are 24% for industry, 20% for transport, 16% for residential, 9% for commercial and service and 8% for the remaining (TPAO, 2018).

Doğru Cevap: A

Soru 6

Purchasing power parities (PPP) are indicators of price level differences across countries.

PPPs indicates how many currency units, a given quantity of goods and services costs in different countries.

Purchasing power parity means the quantity of goods and services bought with the same amount of currency in different countries.

The purchasing power standard (PPS), eliminates the effect of price level differences across countries created by fluctuations in currency exchange rates.

Which statements above on Purchasing power parities (PPP) are correct?

I,II

I,III,IV

I,II,III

II,III,IV

I,II,III,IV

Açıklama:

If your answer is wrong, please review the “Gross Domestic Product and Per Capita Income” section.
Purchasing power parities, abbreviated as PPPs, are indicators of price level differences across countries. PPPs tell us how many currency units a given quantity of goods and services costs in different countries. Using PPPs to convert expenditure expressed in national currencies into an artificial common currency, the purchasing power standard (PPS), eliminates the effect of price level differences across countries created by fluctuations in currency exchange rates.Purchasing power parity means the quantity of goods and services bought with the same amount of currency in different countries.

Doğru Cevap: E

Soru 7

When did the majority of villages in Turkey became neighborhoods connected to the towns and provinces?

2012

2015

2016

2017

2019

Açıklama:

If your answer is wrong, please review the “Population” section.
The majority of villages in Turkey became neighborhoods connected to the towns and provinces in 2012 through a law. The rural population rate of around 25% declined to around 8%. In fact, rather than urbanization in the normal process, residential neighborhoods are legally urbanized.

Doğru Cevap: A

Soru 8

Turkey is rich in which of the following mineral resources?

Iron

Copper

Gold

Manganese

Aluminum

Açıklama:

If your answer is wrong, please review the “Mineral Resources” section.
Turkey is a rich country in the following mineral resources: boron salts, barite, gypsum, meerschaum, marble, diatomite, perlite, magnesite, strontium salts, sepiolite, fluorite, chalk, pumice, sodium sulfate, zeolite, pyrophyllite, quartz-quartzite, lignite, feldspar,halite, olivine, silica sand, gold, bentonite, trona, asbestos, calcite and grindstone. Even not rich, Turkey has other important mineral resources such as kaolin, carbon dioxide, chromium, molybdenum, bauxites, nepheline syenite, mercury, rare earth elements, diatomite, Route, antimony, thorium, alunite, sand-gravel, silver, peat, brick soil, and tungsten. The following mineral resources are insufficient in Turkey: copper, manganese, graphite, paint soils, lead, aluminum, coal, zircon, zinc, arsenic, talc, titanium, iron, sulfur, mica, nickel, phosphate and clay minerals.

Doğru Cevap: C

Soru 9

Which below is not a handicap or risk in the Turkish economy

The insufficient stock of foreign exchange reserves.

The shallowness of the financial sector.

The high level of external debt of the private sector.

The financing needs of the private sector.

The increase in the budget deficit.

Açıklama:

If your answer is wrong, please review the “The Direction of the Turkish Economy in 2019” section
The insufficient stock of foreign exchange reserves, high level of external debt of the private sector and financing needs of the private sector are main handicaps in the Turkish economy. Despite the low level of public debt, the increase in the budget deficit has been identified as another risk.

Doğru Cevap: B

Soru 10

How many standby agreements has Turkey signed with the IMF betweeın 1960 and 2020?

Açıklama:

If your answer is wrong, please review the “Standby Agreements With the IMF” section.
A total of 56.9 billion dollars allocated via 19 standby agreements but only 87% of the allocation (49.6) could be used.

Doğru Cevap: D

Soru 11

Which of the following year first constitution was adopted by Ottoman Empire?

1876

1921

1924

1920

1889

Açıklama:

The first constitution was adopted in 1876 in the Ottoman Empire.

Doğru Cevap: A

Soru 12

Which of the following best describes the Ottoman administration system?

constitutional monarchy

republic

parliamentary system

Democracy

Kingdom

Açıklama:

The Ottoman administration system can be characterized as a constitutional monarchy.

Doğru Cevap: A

Soru 13

In 1920, which of following event took place?

Opening the parliament in Ankara.

the Ottoman Empire adopted the first constitution.

the Ottoman Empire’s first constitution was amended.

the abolition of the sultanate.

the proclamation of the Republic.

Açıklama:

the parliament was opened in Ankara.

Doğru Cevap: A

Soru 14

Which of following is not considered as one of milestones in the establishment of modern Turkey

the military coup in 1980

Opening the parliament in Ankara in 1920.

the abolition of the sultanate in 1921

the proclamation of the Republic in 1923

the abolition of the caliphate in 1924.

Açıklama:

Opening the parliament in Ankara in 1920, the abolition of the sultanate in 1921, the proclamation of the Republic in 1923 and the abolition of the caliphate in 1924 are milestones in the establishment of modern Turkey.

Doğru Cevap: A

Soru 15

Which of the following is not a one of the main pillars in the new system in Turkey established after 2017?

Parliament

ministries,

offices

policy boards

directorates

Açıklama:

The new system in Turkey has four pillars; ministries (16), offices (4), policy boards (9) and directorates (8). Parliament and the judiciary are located outside the executive.

Doğru Cevap: A

Soru 16

“In international references, Turkey is considered in the Middle East and North Africa (MENA), Asia and Europe.” Which of the following cannot be used for this categorization?

administrative system

cultural

historical

economic ties

integration

Açıklama:

In international references, Turkey is considered in the Middle East and North Africa (MENA), Asia and Europe. This categorization is based on cultural, historical, and economic ties and integration

Doğru Cevap: A

When was the Ottoman sultanate abolished?

1920

1921

1922

1923

1924

Açıklama:

The Ottoman sultanate was abolished in 1921.

Opening the parliament in Ankara in 1920, the abolition of the sultanate in 1921, the proclamation of the Republic in 1923 and the abolition of the caliphate in 1924 are milestones in the establishment of modern Turkey.

Doğru Cevap: B

Soru 23

When was the Ottoman caliphate abolished?

1920

1921

1922

1923

1924

Açıklama:

The Ottoman caliphate was abolished in 1924.

Doğru Cevap: E

Soru 24

When was the post of the prime minister removed in the Turkish government system?

2016

2017

2018

2019

2020

Açıklama:

The post of the prime minister in Turkey was removed in 2018.

Doğru Cevap: C

Soru 25

Which of the following is not one of the four pillars of the new presidential government system in Turkey?

Ministries

Offices

Central executive boards

Policy boards

Directorates

Açıklama:

The new system in Turkey has four pillars; ministries (16), offices (4), policy boards (9) and directorates (8). Parliament and the judiciary are located outside the executive (Aliriza, 2018), (Figure 1.1).

Doğru Cevap: C

Soru 26

What percentage of Turkey's territory is a part of Asia?

%93

%94

%95

%96

%97

Açıklama:

Approximately 97% of Turkey’s territory is in Asia, and 3% is on the European continent.

Doğru Cevap: E

Soru 27

Which of the following is not one of the countries neighboring Turkey?

Georgia

Armenia

Nakhchivan

Russia

Bulgaria

Açıklama:

Turkey’s neighboring countries are Georgia, Armenia, Nakhchivan (attached to Azerbaijan) and Iran, in the east, Greece, and Bulgaria in the west, and Iraq and Syria in the south. The shortest border is with Nakhchivan (18 km), the longest border is with Syria (911 km) (Toprak and Çatalbaş, 2019).

Doğru Cevap: D

Soru 28

Which country has the shortest border with Turkey?

Armenia

Georgia

Nakhchivan

Greece

Bulgaria

Açıklama:

Turkey's shortest border is with Nakhchivan (18 km), the longest border is with Syria (911 km) (Toprak and Çatalbaş, 2019).

Doğru Cevap: C

Soru 29

Which country has the longest border with Turkey?

Nakhchivan

Syria

Iraq

Greece

Bulgaria

Açıklama:

Turkey's longest border is with Syria (911 km) (Toprak and Çatalbaş, 2019).

Doğru Cevap: B

Soru 30

Which of the following is the biggest dam in Turkey?

What is the unemployment rate in Türkiye in 2008?

Açıklama:

Chapter 2- Main Economic Indicators Income Distribution and Poverty- ECONOMIC GROWTH, UNEMPLOYMENT, AND INFLATION IN TURKEY
In 2008, the unemployment rate in Turkey was 10 percent.

Doğru Cevap: A

Soru 27

Among the 20 largest economies in the world, which of the countries below has the highest unemployment rate?

Turkey

Spain

Italy

Brazil

France

Açıklama:

Chapter 2- Main Economic Indicators Income Distribution and Poverty- ECONOMIC GROWTH, UNEMPLOYMENT, AND INFLATION IN TURKEY
Spain: 17.2

Doğru Cevap: B

Soru 28

Which of the following is the region with the highest poverty rate in Türkiye in 2018?

West Blacksea

West Anatolia

Central-East Anatolia

South-East Anatolia

North-East Anatolia

Açıklama:

Chapter 2- Main Economic Indicators Income Distribution and Poverty- INCOME DISTRIBUTION AND POVERTY IN TURKEY
Central-East Anatolia: 13.6

Doğru Cevap: C

Soru 29

Which of the following is the region with the lowest poverty rate in Türkiye in 2018?

East Marmara

West Marmara

West Black Sea

East Black Sea

Aegean

Açıklama:

Chapter 2- Main Economic Indicators Income Distribution and Poverty- INCOME DISTRIBUTION AND POVERTY IN TURKEY
East Black Sea

Doğru Cevap: D

Soru 30

Which of the following is the region with the highest poverty rate in Türkiye in 2012?

It was enacted with Law No. 4760.
It is an indirect tax, such as VAT, that is required for EU harmonization laws.
The purpose of this tax is to provide a social benefit as well as earning income.
It is applied to luxury goods (jewelry, fur, etc.), goods that are harmful to health (alcohol, cigarettes, etc.), and goods causing environmental degradation (gasoline, etc.).
It is an easy-to-manage and collectible tax for the tax administration as it is a single-stage tax.

Which of the following can have the features given above?

Special Consumption Tax

Value Added Tax

Taxes on International Trade and Transactions

Enterprise and Property Revenues

Tax on Games of Chances

Açıklama:

In 2002, the Special Consumption Tax (SCT) was enacted with Law No. 4760. SCT is an indirect tax, such as VAT, that is required for EU harmonization laws. The purpose of SCT is to provide a social benefit as well as earning income. For this reason, SCT is applied to luxury goods (jewelry, fur, etc.), goods that are harmful to health (alcohol, cigarettes, etc.), and goods causing environmental degradation (gasoline, etc.). SCT is an easy-to-manage and collectible tax for the tax administration as it is a single-stage tax.

Doğru Cevap: A

Soru 25

‘While the share of direct taxes in the Turkish Tax System gradually decreased, the share of indirect taxes increased gradually. This problem is quite a controversial issue in Turkey because an increase in the share of indirect taxes in budget revenues brings up ………. problem.’
Which of the following fills the gap in the given sentence most appropriately?

Low elasticity

Digital regression

Inadequate saving

Income inequality

Justice of wealth

Açıklama:

While the share of direct taxes in the Turkish Tax System gradually decreased, the share of indirect taxes increased gradually. This problem is quite a controversial issue in Turkey because an increase in the share of indirect taxes in budget revenues brings up the income inequality problem.

Doğru Cevap: D

Soru 26

‘Proper public sector debt management depends on the ………. and the stability of exchange rates.’
Which of the following fills the gap in the given sentence most appropriately?

balanced financial sector

stability of debt stock

interest rate of borrowing

Steady economic growth

appropriate income distribution

Açıklama:

Debts must be sustainable so that budget deficits do not create economic problems. Proper public sector debt management depends on the interest rate of borrowing and the stability of exchange rates.

Doğru Cevap: C

Soru 27

In Turkey which of the following unit is responsible for public sector borrowing after September 2019?

General Manager of Public Finance

Ministry of Treasury and Finance

Ministry of Family and Social Services

General Directorate of Borrowing

Ministry of Interior

Açıklama:

Previously, the General Manager of Public Finance was responsible for borrowing under the same ministry. The General Directorate of Borrowing was established in September 2019 with the Presidential Decree (Decree number: 45).

Doğru Cevap: D

Soru 28

Which of the following shows how much non-metropolitan municipalities receive from the state tax revenues?

3.1%

3.0%

2.7%

2.5%

1.5%

Açıklama:

Non-metropolitan municipalities (848 in total) are allocated 1.5% of the state tax revenues.

Doğru Cevap: E

Soru 29

Looking at the 1986 to 2019 privatization amounts of Turkey which of the year given below has the highest privatization revenues?

2012

2013

2014

2015

2016

Açıklama:

Figure 3.1 shows privatization amounts in Turkey from 1986 to 2019. As can be seen from the figure, privatization gained speed post-2003, and in 2013, approximately 12.5 billion dollars of revenue was obtained from privatization.

Doğru Cevap: B

Area-based supports and other supports

Biological and bio-technic control supports and livestock supports

Compensation payments and area-based supports

Compensation payments and livestock supports

Area-based supports and biological and bio-technic control supports

Açıklama:

Compensation payments and livestock supports account for about 50-55% of the total support value since 2013. Another important proportion is the area-based supports with about 20-25% while other supports and biological and bio-technic control combined account for the rest.

There are five main groups of agricultural support payments in Turkish Economy: • Compensation payments; Area-based supports • Biological and bio-technic control supports • Livestock supports • Other supports

Doğru Cevap: D

Soru 19

Between the years 2002 and 2018, the increase in import of fruits in value is about (1)........times and the increase in export of fruits in value is about (2).........times.
Which of the followings should be substituted into the blanks above to make the statement correct?

(1): 13.7 (2): 8.6

(1): 12 (2): 14.9

(1): 5.5 (2): 6.7

(1): 11.7 (2): 11.9

(1): 14.8 (2): 18.8

Açıklama:

It can be deduced from Table 4.7 that between the years 2002 and 2018, both the amount imported and the amount exported tripled in terms of fruits but the important subject here is value. In about one and a half decades, the total import value went up from 34,865,000 $ to 513,240,000 $. In other words, the increase in value is about 13.7 times. However, for the exports, the value went up from 392,000,000 $ to 3,767,263,000 $, corresponding to an 8.6 times increase.

Doğru Cevap: A

Soru 20

Similar to GDP ratio, as countries develop, their agricultural/rural employment levels in whole employment tend to ........... and this is in high correlation with .................. capital stock.
To make the above statement correct, which of the followings should be substituted in to the blanks respectively?

increase; capital-consuming

increase; capital-saving

decrease; labor-saving

increase; labor-saving

decrease; capital-saving

Açıklama:

Similar to GDP ratio, as countries develop, their agricultural/rural employment levels in whole employment tend to decrease and this is in high correlation with labor-saving capital stock. However, for underdeveloped and emerging countries the ratio remains relatively higher despite a general tendency to resemble a decreasing trend.

Doğru Cevap: C

Soru 21

Which one of the following is not a support mechanism for the farmers?

Income supports

Trade barries

Seed restriction

Subsidies

Price control

Açıklama:

The vast majority of countries support farmers by at least one but usually a combination of;
• Income supports
• Trade barriers
• Subsidies
• Price controls

Doğru Cevap: C

Soru 22

I. Agricultural production relies mainly on climate conditions.
II. Agricultural production has its own characteristics of supply.
III. Agricultural goods production is not geographically concentrated.
Which ones of the above statements are true about agricultural production?

Only I

Only III

I and III

I and II

II and III

Açıklama:

Agricultural production (still) relies mainly on climate conditions...Agricultural production has its own characteristics of supply...Agricultural goods production is geographically concentrated...

Doğru Cevap: D

Soru 23

Which of the following is the largest products in Turkish agricultural sector?

Barley

Maize

Lentil

Potatoes

Dry onions

Açıklama:

Wheat, sugar beet and barley are the largest products in the agricultural sector, two of them -wheat and sugar beet- being produced more than 20 million tonnes in 2017.

Doğru Cevap: A

Soru 24

Which of the following is false about cotton production in Turkish agricultural industry?

Cotton is a high added value-added product

It is an important ingredient for the textile sector

Turkish cotton production is self-sufficient

Turkish imports trend on cotton tends to increase

Sharp decrease in production was captured after 2007

Açıklama:

Cottonseed and cotton lint are agricultural products with high added value and are important ingredients for the textile sector. According to the Food and Agriculture Organization of the United Nations, Chinese demand for cotton is declining while Indian demand for it increases along with the rest of the world. Turkish cotton production is not self-sufficient and Turkish imports trend on cotton tends to increase, similar to Indonesia and Vietnam...The trend for cotton production has clearly increased until early 1970s and after that it became weaker despite keeping the trend direction. After the year 1994, the trend started gaining strength in favor, yet it once again lost its pace in the early 2000s. As seen in the graph, the trend seems to be stabilized since then. Note that a sharp decrease in production was captured after 2007 and it lasted until 2009, arguably being a result seen after a global economic crisis, which resulted in a fall in global demand.

Doğru Cevap: C

Soru 25

I. Small arable land per producer
II. Capital intensive production
III. Rapid depletion of natural resources
Which one of the above can be accounted as current problems of Turkish agriculture?

Only II

I and II

I and III

II and III

Only III

Açıklama:

Using this as a starting point, we can analyze current problems in Turkish agricultural sector in five separate segments
• Small arable land per producer
• Insufficient capital investment
• Insufficient generation of added value
• Domestic price levels and multinational competition
• Rapid depletion of natural resources

Doğru Cevap: C

Soru 26

Which one of the following is one of the the requirements of “Standard Layout for UNECE Standards on Fresh Fruit and Vegetables 2017”?

Free from pests

Usage of heirloom

Free from GDOs

Usage of dry farming techniques

Organic production

Açıklama:

For example, according to “Standard Layout for UNECE Standards on Fresh Fruit and Vegetables 2017” an agricultural product in this category must have the minimum requirements of being:
• Intact
• Sound
• Clean (at some point, soil is acceptable)
• Free from pests
• Free from damage caused by pests
• Free of abnormal external moisture
• Free of any foreign smell and/or taste

Doğru Cevap: A

Soru 27

Regarding the macro-level data, what is the most important product in the Turkish agricultural sector?

Spice production

Tea production

Vegetable production

Fruit production

Crops production

Açıklama:

After a close look at the Turkish agricultural sector, it is useful to grasp and understand how the sector finds its place in the whole economy and how this place changes in time.
The most important and the largest part of the whole agricultural sector in Turkey consists of field crops production.

Doğru Cevap: E

Soru 28

Which of the following country is Türkiye's main market for agricultural export in 2018?

Iraq

Germany

United States

Brazil

Bulgaria

Açıklama:

According to Turkish Exporters’ Assembly, the largest exports from the sector were made to Iraq with a total worth of 3,634,464,000$ while Germany and the United States followed it with 1,525,941,000$ and 1,005,459,000$ respectively in 2018.

Doğru Cevap: A

Soru 29

Which one of the following is the most important determinant for the productivity increase in the Turkish agricultural industry?

Capital investment

Labour investment

Biodiversity investment

Irrigation investment

GMO investment

Açıklama:

Physical capital investments embodying modern technologies are of high importance for the sector in terms of productivity increase.

Doğru Cevap: A

Soru 30

Which of the following is not one of the subsidiaries of the Ministry of Agriculture and Forestry?

Investment goods

Liquidity goods

Inferior goods

Veblen goods

Norman goods

Açıklama:

Doğru Cevap: A

Soru 6

What is the main reason for Türkiye's failure to protect infant industries from foreign competition?

The Izmir Economy Congress,the industry must be integrated to compete with other countries.

The share of intermediate and investment goods increased due to export-oriented industrialization model implemented since 1980.

The state itself wanted to start the development move rather than letting the private sector into the industrial sector.

Ottoman government had to maintain tariff rates at their September 1916 level as had been mandated by the Lausanne Treaty.

The lack of legal regulations to encourage private industrial production during the transition period to the liberal economy.

Açıklama:

If your answer is wrong, please review the “Turkey’s Industry History and Periods” section.
The main reason Turkey was unable to protect its infant industries from foreign competition was that the Ottoman government had to maintain tariff rates at their September 1916 level as had been mandated by the Lausanne Treaty.

Doğru Cevap: D

Soru 7

During which period the first five-year Industrial Plan was implemented?

1923 - 1027

1924 - 1928

1929 - 1933

1934 - 1938

1938 - 1942

Açıklama:

If your answer is wrong, please review the “Turkey’s Industry History and Periods” section.
The first five-year Industrial Plan was adopted by the government and put into force on 17 April 1934 and implemented between 1934 - 1938.

Doğru Cevap: D

Soru 8

When did Turkey abandon the statist policies the started in 1930's, and a liberal period begin in the economy?

1980's

1970's

1960's

1950's

1940's

Açıklama:

If your answer is wrong, please review the “Turkey’s Industry History and Periods” section.
When the Menderes Government took office in 1950, statist policies were abandoned, and a liberal period began in the economy.

Doğru Cevap: D

Soru 9

Which statement below is not correct for the period briefly after 1980?

Türkiye adopted an export-based growth strategy.

Capacity utilization rates increased, and a competitive environment was created.

Increased quality of goods to be exported within the framework of integration with the World.

Imports of intermediate and investment goods continued.

With the opening out, industrial branches that could find a market, could not find a market.

Açıklama:

If your answer is wrong, please review the “Turkey’s Industry History and Periods” section.
Briefly after 1980;

Türkiye adopted an export-based growth strategy,

Turkish lira devalued against the dollar,

Imports of intermediate and investment goods continued,

With the opening out, industrial branches that could not find a market could find a market,

Capacity utilization rates increased, and a competitive environment was created and costs per unit decreased with the economy of scale,

Increased quality of goods to be exported within the framework of integration with the World.

Doğru Cevap: E

Soru 10

Which indicator below refers to the output of industrial establishments and covers sectors such as mining, manufacturing and public utilities (electricity, gas and water)?

Money Supply (M2)

Current Employment Statistics (CES)

Consumer Price Index (CPI)

Gross Domestic Product (GDP)

Industrial Production Index (IPI)

Açıklama:

If your answer is wrong, please review the “Key Facts of Industrial Sector” section.
Industrial production refers to the output of industrial establishments and covers sectors such as mining, manufacturing and public utilities (electricity, gas and water). This indicator is measured in an index based on a reference period that expresses the change in the volume of production output. The industrial production index (IPI) is an economic indicator measuring real output in the manufacturing, mining, electric and gas industries, relative to a base year.

Doğru Cevap: E

Soru 11

Which of the following sector had the highest number of business and employers in 1921?

Weaving

Leather processing

Food

Woodwork

Chemistry

Açıklama:

Weaving sector had the highest number of business (20.057) and employers (35.316) in 1921.

Doğru Cevap: A

Soru 12

Which decision was not taken for the industry at the Izmir Economics Congress?

Craftsmanship and small business should be stopped and fabricated as soon as possible.

The products of foreigners should be avoided, and the industry must be integrated to compete with other countries.

Industry branches whose raw material can be grown in the country should be established.

State-owned enterprises should transfer to the private sector.

Industry should be encouraged.

Açıklama:

In the Izmir Economics Congress, Turkey’s economic decisions were discussed. Several decisions were taken for the industry at the congress. These are;

Craftsmanship and small business should be stopped and fabricated as soon as possible.
The products of foreigners should be avoided, and the industry must be integrated to compete with other countries.
Industry branches whose raw material can be grown in the country should be established.
Industry should be encouraged.

Doğru Cevap: D

Soru 13

When the Industrial and Maadin Bank was replaced by Sümerbank?

1923

1930

1933

1942

1945

Açıklama:

In 1933, the Industrial and Maadin bank was replaced by Sümerbank.

Doğru Cevap: C

Soru 14

When the first five-year Industrial Plan was implemented?

1923-1927

1929-1933

1930-1934

1934- 1938

1938-1942

Açıklama:

The First Five-Year Industrial Plan was adopted by the government and put into force on 17 April 1934 and implemented between 1934- 1938.

Doğru Cevap: D

Soru 15

Which of the following plan was applied the aims of with the promotion of exports instead of import substitution, the selection of agriculture instead of industry, and the preference of the private sector over the public sector?

The First Five-Year Industrial Plan

The Second Five-Year Industrial Plan

The Third Five-Year Industrial Plan

The 1947 Development plan (Vaner Plan)

The First Five-Year Development Plan

Açıklama:

The promotion of exports instead of import substitution, the selection of agriculture instead of industry, and the preference of the private sector over the public sector were realized with the 1947 development plan (Vaner Plan) and the liberal period began.

Doğru Cevap: D

Soru 16

Which of the following corporations was/were introduced to the national economy during the first five-year industrial plan period?

Iron -Steel and Turkey Coal Enterprises

Turkey Petroleum Corporation and Pulp and Paper

Sümerbank and Etibank

Ereğli Iron and Steel Works

Meat and Fish Institution

Açıklama:

During the first five-year industrial plan period, about 20 factories were established. Two large corporations, Sümerbank and Etibank, were introduced to the national economy with this plan.

Doğru Cevap: C

Soru 17

When the State Planning Organization was established?

1923

1938

1945

1950

1961

Açıklama:

With the law enacted in 1961, the State Planning Organization was established and assigned to prepare and carry out development plans.

Doğru Cevap: E

Soru 18

When the second five-year development plan was implemented?

1961-1965

1966-1970

1963-1967

1968-1972

1973-1977

Açıklama:

The second development plan was put into force in 1968 until 1972.

Doğru Cevap: D

Soru 19

Which of the following is the first development plan, the principle of balanced growth of agricultural and industrial sectors was abandoned?

The First Five-Year Development Plan

The Second Five-Year Development Plan

The Third Five-Year Development Plan

The Fourth Five-Year Development Plan

The Fifth Five-Year Development Plan

Açıklama:

In the second development plan, as in the first development plan, the principle of balanced growth of agricultural and industrial sectors was abandoned. According to this development plan, the industry was very important and should be the driving sector of the economy.

Doğru Cevap: B

Soru 20

Which of the following industry is not one of the have the potential to become centers of excellence by 2041?

Food and beverage processing

Agricultural R&D and services

Alternative energy

Automobile production

Manufacturing

Açıklama:

Several industries have the potential to become centers of excellence by 2041 including: Food and beverage processing; Agricultural R&D and services; Alternative energy; Automobile production and Tourism.

Soru 1

Which of the folowing institutions is prepared the widely used "Sevices Sectoral Classification List"?

World Trade Organization (WTO)

International Monetary Fund (IMF)

World Bank (WB)

United Nations (UN)

Organization for Economic Cooperation and Development (OECD)

Açıklama:

WTO is prepared the mentioned classification list.

Doğru Cevap: A

Soru 2

According to three-sector model, which of the following covers manufacturing activities?

Primary sector

Secondary sector

Tertiary sector

Quaternary sector

Quinary sector

Açıklama:

The three-sector model accepts manufacturing activites as the secondary sector of the economy.

Doğru Cevap: B

Soru 3

According to Engel's Law, what is the value of income elasticity of demand for services?

Less than 1

Between 0 and 1

Greater than 1

Less than 0

Between -1 and 1

Açıklama:

Engel's Law states that the income elasticity of demand for services is greater than 1.

Doğru Cevap: C

Soru 4

Which of the existence of the following factors between manufacturing and services creates the "cost disease"?

Output gap

Inflation gap

Interest rate gap

Productivity gap

Employment gap

Açıklama:

Productivity gap between manufacturing and services sectors activities causes the so called "cost disease".

Doğru Cevap: D

Soru 5

Which of the following sectors is not included in services by World Bank?

Environmental services

Transport services

Business services

Financial services

Construction activities

Açıklama:

World Bank does not accept construction activities as service sector component.

Doğru Cevap: E

Soru 6

Which of the following statements summarizes the trend of services sector share in GDP in Turkey after 2001?

Regularly increasing

Regularly decreasing

Sharply fluctuating

Sharply decreasing

Stable around 60%

Açıklama:

The share of the services sector in total GDP in Turkey after 2001 is around 60% every year.

Doğru Cevap: E

Soru 7

Depending on the data used in the chapter, which of the following country citizens has the hishest share in foreigners who bought houses in Turkey?

Germany

United Kingdom

Denmark

Iraq

Iran

Açıklama:

Iraq citizens have the highest share in foreigners who bought houses in Turkey considering the recent data.

Doğru Cevap: D

According to the WTO (World Trade Organization), there are twelve primary services in the services sector. Which below is one of them?

Real estate activities

Mining

Financial services

Transportation and storage

Public administration and defense

Açıklama:

If your answer is wrong, please review the “Introduction” section.
According to the WTO (World Trade Organization), there are twelve primary services in the services sector. These services are announced in the WTO’s “Services Sectoral Classification List.” The services in the “List” as follows:

Business services
Communication services
Construction and related engineering services
Distribution services
Educational services
Environmental services
Financial services
Health-related and social services
Tourism and travel-related services
Recreational, cultural and sporting services
Transport services
Other services not included elsewhere (WTO, 1991).

WTO (1991). Services Sectoral Classification List. [online] Available at: http://www.wto.org/ english/tratop_e/serv_e/mtn_gns_w_120_e.doc [Accessed 1 Oct. 2019].

Doğru Cevap: C

Soru 12

Which statement on goods and services below is true?

Goods’ owners can change, but the services’ owners can not.

Goods and services can be stored.

Goods are intangible non-physical entities.

Goods cannot be separable from the seller, while Services can be seperable.

Services can be evaluated easier than services because goods are highly variable for each provider.

Açıklama:

If your answer is wrong, please review the “The Differences between Services and Goods.” section.
Goods are tangible physical entities, but services are beneficial activities provided by other people. Goods’ owners can change, but the services’ owners can not. Goods can be evaluated easier than services because services are highly variable for each provider. The purchaser can return a good, but services cannot be returnable in most cases. Goods can be separable from the seller. Services can not. A specific good is highly the same for every product. However, services can vary each time. Goods can be stored, but most of the services cannot be stored.

Doğru Cevap: A

Soru 13

Which statement on goods and services below is not true?

Goods’ owners can change, but the services’ owners can not.

A specific good is highly the same for every product, but services can vary each time.

Goods can not be separable from the seller, but services can be.

Goods can be stored, but most of the services cannot be stored.

The purchaser can return a good, but services cannot be returnable in most cases.

Açıklama:

Doğru Cevap: C

Açıklama:

Turkey started to implement the Financial Inclusion Strategy in 2014 before the tenth annual meeting of the G20, where heads of governments participated in the G20 summit held in Turkey. In this G20 summit held in 2015, Turkey declared that financial inclusion will be one of the country’s priorities to achieve sustainable growth. Turkey began to remove some barriers in access to financial services especially for the young, the women, and small-medium scale firms.

Doğru Cevap: A

Soru 21

Which institution below "...carries out the functions of regulation, supervision and enforcement within the aim of providing reliability and stability in financial markets, ensuring the efficient running of the credit system, protecting rights and interests of savers and developing financial sector considers strategic planning as one of the main instruments to fulfill its duties effectively" in Turkey?

BRSA

FED

CMBT

MPC

CBRT

Açıklama:

BRSA (Banking Regulation and Supervision Agency)

FED (Federal Reserve System, US)

CMBT (Capital Markets Board of Turkey)

MPC (Monetary Policy Committee)

CBRT(Central Bank of the Republic of Turkey)

“The Banking Regulation and Supervision Agency carries out the functions of regulation, supervision and enforcement within the aim of providing reliability and stability in financial markets, ensuring the efficient running of the credit system, protecting rights and interests of savers and developing financial sector considers strategic planning as one of the main instruments to fulfill its duties effectively.” (BRSA, 2019).
BRSA, The Banking Regulation And Supervision Agency, https://www.bddk.org.tr/aboutus/about- agency/16, May 2019.

Doğru Cevap: A

Soru 22

Which institution below "...aims to ensure efficient and extensive involvement of the public to economic development through transforming investments into securities and protect the rights and benefits of investors by promoting the principles of fairness, transparency and stability in the capital market" in Turkey?

BRSA

FED

CMBT

MPC

CBRT

Açıklama:

BRSA (Banking Regulation and Supervision Agency)

FED (Federal Reserve System, US)

CMBT (Capital Markets Board of Turkey)

MPC (Monetary Policy Committee)

CBRT(Central Bank of the Republic of Turkey)

Doğru Cevap: C

Soru 23

Why have the Turkish finance and banking sectors become more enduring in recent years?

Because of the banking and financial reforms that were implemented by the government in the 2000s.

Because of the shallowness of its financial sector.

Because the deterioration of the financial habitat due to 2008 Crisis created an advantage for emerging markets.

Because Turkey is known globally fo promoting fairness and transparency in the capital markets.

Because Turkey is a developed country with strong financial institutions.

Açıklama:

If your answer is wrong, please review the “Introduction” section.
Thanks to the banking and financial reforms that were implemented by the government in the 2000s, the Turkish finance and banking sectors have become more enduring in recent years.

Doğru Cevap: A

Soru 24

Which one of the criteria listed below does Turkey follow?

Basel I

Basel II

Basel III

Basel IV

Basel V

Açıklama:

If your answer is wrong, please review the “Introduction” section.
Turkey follows the Basel III criteria and puts more weight on macro and micro- prudential legislation to be conducted within the finance and banking industry.

Doğru Cevap: C

Soru 25

Which below is not one of the goal of and objectives of the Capital Markets Board of Turkey

Enhancing the infrastructure of the capital markets.

Developing investor protection.

Promoting fairness and transparency in the capital markets.

Diverging from the international capital market regulations.

Enhancing and promoting the effectiveness of the capital markets.

Açıklama:

If your answer is wrong, please review the “Two Key Institutions and New Standards: BRSA and CMBT” section.
Some goals and objectives of the Capital Markets Board of Turkey are listed as follows:

Enhancing the infrastructure of the capital markets.
Promoting fairness and transparency in the capital markets.
Developing investor protection.
Enhancing and promoting the effectiveness of both the demand and supply sides of the capital markets.
Following the international capital market regulations and adopting them into domestic markets (CMBT, 2019).

CMBT, (2019). The Capital Markets Board Of Turkey, http://www.cmb.gov.tr/sayfa/index/0/0, 26 September 2019

Doğru Cevap: D

Soru 26

Which institution below is a "player" in banking?

Saving Deposit Insurance Fund

Central Registry Agency

Capital Markets Licensing and Training Agency

Private Pension Companies

Public and Listed Companies

Açıklama:

If your answer is wrong, please review the “General Outlook of the Turkish Finance Sector: Regulators, Representatives and Players” section.

Doğru Cevap: A

Soru 27

Which institution below is a "player" in capital markets?

Association of Financial Institutions

Banks’ Association of Turkey

Central Registry Agency

Saving Deposit Insurance Fund

Private Pension Funds

Açıklama:

If your answer is wrong, please review the “General Outlook of the Turkish Finance Sector: Regulators, Representatives and Players” section.

Doğru Cevap: C

Soru 28

Which institution below is a "representative" in banking?

Under secretariat of Treasury

Capital Markets Board

Association of Financial Institutions

Borsa Istanbul

Central Registry Agency

Açıklama:

If your answer is wrong, please review the “General Outlook of the Turkish Finance Sector: Regulators, Representatives and Players” section.

Doğru Cevap: C

Soru 29

The Turkish finance sector is composed of banking, capital, and insurance markets. Which institution below is a "player" in more than two markets?

Association of Financial Institutions

Banks

Capital Markets Board

Deposit Insurance Fund

Emergency Expenditure Fund

Açıklama:

If your answer is wrong, please review the “General Outlook of the Turkish Finance Sector: Regulators, Representatives and Players” section.

Doğru Cevap: B

Soru 30

The Turkish finance sector is composed of several economic actors: banking, capital markets, and insurance. Which institution is a "regulator" in one of the aforementioned actors?

Association of Financial Institutions

Capital Markets Licensing and Training Agency

Investment Compensation Center

Capital Markets Board

Saving Deposit Insurance Fund

Açıklama:

If your answer is wrong, please review the “General Outlook of the Turkish Finance Sector: Regulators, Representatives and Players” section.

Doğru Cevap: D

Soru 31

What does BRSA stand for?

The Banking Regulation and Support Agency

The Banking Regulation and Supervision Agency

The Banking Recreation and Supervision Agency

The Banking Registration and Submission Agency

The Banking Restriction and Support Agency

Açıklama:

The Banking Regulation and Supervision Agency (BRSA) and the Capital Markets Board of Turkey (CMBT) are two key and significant public institutions that supervise the Turkish financial markets.

Doğru Cevap: B

Soru 32

When did BRSA start operating?

2000

2001

2002

2003

2004

Açıklama:

The Banking Regulation and Supervision Agency (BRSA) was established and started to operate in the mid of 2000.

Doğru Cevap: A

Soru 33

Which of the following is not among the goals and objectives of the Capital Markets Board of Turkey?

Enhancing the infrastructure of the capital markets.

Promoting fairness and transparency in the capital markets.

Protecting Turkish Lira.

Enhancing and promoting the effectiveness of both the demand and supply sides of the capital markets.

Developing investor protection.

Açıklama:

Protecting Turkish Lira is not among some goals and objectives of the Capital Markets Board of Turkey.
Protecting Turkish Lira is not among the goals and objectives of the Capital Markets Board of Turkey.

Doğru Cevap: C

Soru 34

Which decade represented a major turning point, a rapid acceleration toward capitalization and financialization in Turkish finance and banking sector?

The 1960s

The 1970s

The 1980s

The 1990s

The 2000s

Açıklama:

The 1980s represented a major turning point, a rapid acceleration toward capitalization and financialization in Turkish finance and banking sector.

Doğru Cevap: C

Soru 35

What does NASDAQ stand for?

National Association of Securities Dealers Automated Quotations System.

National Assemble of Securities Dealers Automated Quotations System.

Northern Association of Securities Dealers Automated Quotations System.

North American Association of Securities Dealers Automated Quotations System.

National Assemble of Securities Deals Automated Quotations System.

Açıklama:

NASDAQ stands for National (USA) Association of Securities Dealers Automated Quotations System.

Doğru Cevap: A

Soru 36

Which of the following is not a characteristic of Turkish Financial and Banking Sector Prior the 1980s?

Control on Interest Rates

Directed Credit Programme

Uncompetitive and Inefficient Banking Sector

Finance Sector Dominated By Banking Sector

High Number of Foreign Banks

Açıklama:

High Number of Foreign Banks is not a Characteristics of Turkish Financial and Banking Sector Prior the 1980s.

Doğru Cevap: E

Soru 37

When did the Turkish government seize control of 6 banks?

1996

1999

2001

2007

Soru 1

Which of the phenomena below is not among those often associated with a financial crisis?

Large scale government support in the form of liquidity support and recapitalization.

Substantial changes in credit volume and asset prices

Severe disruptions in financial intermediation and the supply of external financing to various actors in the economy.

Large scale balance sheet problems of firms, households, financial intermediaries, and sovereigns.

Drastic spikes in cryptocurrency prices followed by sharp drops in the prices of stocks and precious metals

Açıklama:

A financial crisis is often associated with one or more of the following phenomena (Claessens and Kose, 2013, 4-5):
• Substantial changes in credit volume and asset prices.
• Severe disruptions in financial intermediation and the supply of external financing to various actors in the economy.
• Large scale balance sheet problems (of firms, households, financial intermediaries, and sovereigns).
• Large scale government support (in the form of liquidity support and recapitalization).

Doğru Cevap: E

Soru 2

Which of the following is not among the four different financial crises depending on the source to distinguish them?

Currency crisis

Banking crisis

Systemic financial crisis

Sovereign debt crisis

Private sector crisis

Açıklama:

Financial crises take place in various ways, and there are four different financial crisis definitions depending on the source to distinguish them. These are currency crisis, banking crisis, systemic financial crises, and sovereign debt crisis.

Doğru Cevap: E

Soru 3

Which crisis involves a speculative attack on the currency resulting in a devaluation?

Currency crisis

Banking Crisis

Systemic Financial Crisis

Sovereign Debt Crisis

Liquidity Crisis

Açıklama:

A currency crisis involves a speculative attack on the currency resulting in a devaluation (or sharp depreciation), or forcing the authorities to defend the currency by expending large amount of international reserves, or sharply raising interest rates, or imposing capital controls (Claessens and Kose, 2013, 12).

Doğru Cevap: A

Soru 4

Which crisis involves the government’s failure to pay internal and external debts belonging to the public and private sectors?

Currency crisis

Banking Crisis

Systemic Financial Crisis

Sovereign Debt Crisis

Liquidity Crisis

Açıklama:

The sovereign debt crisis is the government’s failure to pay internal and external debts belonging to the public and private sectors.

Doğru Cevap: D

Soru 5

Which crisis emerges when the depositors believe that their bank is bankrupt, and withdraw their cash from their deposit accounts?

Currency crisis

Banking Crisis

Systemic Financial Crisis

Sovereign Debt Crisis

Moratorium Crisis

Açıklama:

The banking crisis may arise from the institutional structures of banks, namely their high leverage balance sheets, macroeconomic shocks, risky banking transactions, intense competition, poor management, institutional weakness and dependence on short-term foreign resources and as well as from bank runs (also called as a run at the bank). When the depositors believe that the bank is bankrupt, they run to the bank and withdraw their cash from deposit accounts. Bank run creates a self-fulfilling prophecy that speeds up the bank bankrupt, so the banking crisis occurs as this spreads to other banks (Claessens and Kose, 2013, 18; Yay, Yay and Yılmaz, 2001, 21).

Doğru Cevap: B

Soru 6

Which crisis is described by "a shock to the financial system that impairs crucial functions of the system, such as asset valuation, credit allocation, and payments"?

Currency crisis

Banking Crisis

Systemic Financial Crisis

Sovereign Debt Crisis

Liquidity Crisis

Açıklama:

In its most general usage, the term systemic crisis describes a shock to the financial system that impairs crucial functions of the system, such as asset valuation, credit allocation, and payments.

Doğru Cevap: C

Soru 7

Which crisis involves the collapse of financial institutions, which have great and devastating effects on the real economy and prevent the efficient function of the markets?

Currency crisis

Banking Crisis

Systemic Financial Crisis

Sovereign Debt Crisis

Liquidity Crisis

Açıklama:

Systemic financial crises are the collapse of financial institutions, which have great and devastating effects on the real economy and prevent the efficient function of the markets (Yay, Yay and Yılmaz, 2001, 21).

Doğru Cevap: C

Soru 8

Which of the following is NOT among the causes of systemic financial crises?

Irrational piling-on of debt

Moral hazard induced by mispriced government-provided deposit insurance

Complex relationships among counterparties

A failure of the Central Bank to provide liquidity as needed

Predictable adverse shocks from outside the financial sector

Açıklama:

The causes of systemic financial crises can be listed as follows: irrational piling-on of debt; moral hazard induced by mispriced government-provided deposit insurance; complex relationships among counterparties; an unwillingness of dealers to trade; a failure of the Central Bank to provide liquidity as needed; unpredictable adverse shocks that come from outside the financial sector; and bank runs” (Marshall, 1998, 13).

Doğru Cevap: E

Soru 9

"Depending on the current account deficit and the level of debt, sovereign debt crises reduce the __________ rate and __________ rate while it increases the interest rate, exchange rate, and inflation rate." Which two terms below complete the blanks in this sentence?

Economic growth and Employment

Economic growth and Unemployment

Private investment and Employment

Public spending and Employment

Private spending and Unemployment

Açıklama:

Depending on the current account deficit and the level of debt, sovereign debt crises reduce the economic growth rate and employment rate while it increases the interest rate, exchange rate, and inflation rate.

Doğru Cevap: A

Soru 10

The collapse in the price of which nominal anchor largely motivated the First Generation of Crisis Models?

Silver

Gold

Platinum

Bitcoin

Petrol

Açıklama:

The First Generation of Crisis Models largely motivated by the collapse in the price of gold, an important nominal anchor before the floating of exchange rates in the 1970s, was often applied to currency devaluations in Latin America and other developing countries (Claessens and Kose, 2013, 12).

Doğru Cevap: B

Soru 11

I. Substantial changes in credit volume and asset prices.
II. Severe disruptions in financial intermediation
III. Large scale balance sheet problems
IV. Large scale government support
Which of the above are phenomena of financial crisis?

I and II

II and III

I, II and IV

II, III and IV

I, II, III and IV

Açıklama:

A financial crisis is often associated with one or more of the following phenomena (Claessens and Kose, 2013, 4-5): • Substantial changes in credit volume and asset prices. • Severe disruptions in financial intermediation and the supply of external financing to various actors in the economy. • Large scale balance sheet problems (of firms, households, financial intermediaries, and sovereigns). • Largescale governmentsupport(in theform of liquidity support and recapitalization).

Doğru Cevap: E

Soru 12

Which of the following is not a common consequences of financial-economic crises?

economic downturn

unemployment

corporate bankruptcies

decrease in income equality

deterioration in the real economy

Açıklama:

Financial difficulty or a financial crisis leads to a serious deterioration in the real economy (on the production and distribution side). While financial-economic crises have common consequences such as economic downturn, unemployment, and corporate bankruptcies, many factors can cause financial crises

Doğru Cevap: D

Soru 13

What happens when the financial system does not perform its fundamental function effectively?

certain bottlenecks

appreciate in domestic exchange

increase in productivity

productive investment possibilities

trade surplus

Açıklama:

When the financial system does not perform its fundamental function effectively, certain bottlenecks occur, resources cannot be transferred to productive areas and the production capacity of the economy falls (Mishkin, 1996, 2). Consequently, financial difficulty or a financial crisis leads to a serious deterioration in the real economy (on the production and distribution side).

Doğru Cevap: A

Soru 14

Which of the following is the name for the sudden and significant decline in the value of national currency?

The banking crisis

The currency crisis

The systemic crisis

The financial crisis

The debt crisis

Açıklama:

The currency crisis is the sudden and significant decline in the value of national currency

Doğru Cevap: B

Soru 15

Which of the following models is developed after the collapse of the European Exchange rate mechanism crisis (1992-1993) and the Mexican crisis (1994-1995)?

The First Generation of Crisis Models

The Second Generation of Crisis Model

The Third Generation of Crisis Models

The Fourth Generation of Crisis Models

The Fifth Generation of Crisis Models

Açıklama:

The Second Generation of Crisis Models was developed after the collapse of the European Exchange rate mechanism crisis (1992-1993) and the Mexican crisis (1994-1995) that cannot be explained by the first generation of crisis models.

Doğru Cevap: B

Soru 16

Which of the following institutions suggests the measures called stabilization program?

World Bank

IFC

IMF

IBRD

OECD

Açıklama:

These measures are called stabilization programs, and when governments get financial support from the International Monetary Fund - IMF, the IMF asks governments to comply with various stability programs that are regulated by the IMF.

Doğru Cevap: C

Soru 17

Which of the following is not the year a stabilization programs is launched in Turkey?

1958

1970

1980

2001

2008

Açıklama:

Turkey launched various stabilization programs in 1958, 1970, 1978-1979, 1980, 1994, 1999, and 2000-2001 to overcome the economic crises.

Doğru Cevap: E

Soru 18

Which of the following is a difference between the 24 January 1980 decision and its predecessor?

to adopt the export-oriented industrialization policy

to adopt the import-oriented industrialization policy

to adopt the speculation-oriented industrialization policy

to adopt the finance-oriented industrialization policy

to adopt the trade-oriented industrialization policy

Açıklama:

The difference of the 24 January 1980 decision from the previous ones was to abandon the import substitution industrialization policy and adopt the export-oriented industrialization policy and to minimize government interference in the economy by making the free market economy work in the Turkish economy

Doğru Cevap: A

Soru 19

Which of the following is not true about the stabilization decisions launched on April 5?

The determination of the exchange rate was left to the free market supply and demand forces.

To make the Turkish Lira attractive, taxes on treasury bills and bonds were removed.

Incentives were given to increase capital flows.

The privatization efforts were accelerated.

To make the Turkish Lira more attractive, savings deposits were assured by the government.

Açıklama:

Incentives were given to increase export revenues.

Doğru Cevap: C

Soru 20

Which of the following dates indiacate a crisis that occured because of the mortgage loans?

1989

1994

2000

2001

2008

Açıklama:

The 2008 global economic crisis also known as the global financial crisis arose when subprime mortgage loans, which were opened to low-income people in the USA in 2007, began to default at a high rate. These defaults caused a high rate of foreclosures, deteriorated banks’ balance sheets and caused a credit crunch where the banks became short of funds. As a result, the banking crisis occurred in the USA and with the collapse of the investment bank Lehman Brothers in September 2008, it turned into an international banking crisis. Soon after, it affected the whole world.

Doğru Cevap: E

Soru 21

What is the type of crisis the refers to the government’s failure to service its obligation to the public or private sectors?

Balance of payments crisis

Currency crisis

Banking crisis

Sovereign debt crisis

Capital account crisis

Açıklama:

If your answer is wrong, please review the “Types of Economic Crisis.” section.
The sovereign debt crisis is the government’s failure to pay internal and external debts belonging to the public and private sectors.

Doğru Cevap: D

Soru 22

What type of crisis that is defined as the sudden and significant decline in the value of national currency?

Credit crisis

Banking crisis

Currency crisis

Systemic financial crises

Sovereign debt crisis

Açıklama:

If your answer is wrong, please review the “Types of Economic Crisis.” section.
It is often called sudden stop or capital account or balance of payments crisis. A currency crisis involves a speculative attack on the currency resulting in a devaluation (or sharp depreciation), or forcing the authorities to defend the currency by expending large amount of international reserves, or sharply raising interest rates, or imposing capital controls.
The currency crisis is the sudden and significant decline in the value of national currency. The currency crisis is also called balance of payments crisis.

Doğru Cevap: C

Soru 23

Which below is not a phenomena a financial crisis is often associated with?

Substantial changes in credit volume and asset prices.

Large scale balance sheet problems (of firms, households, financial intermediaries, and sovereigns).

Severe disruptions in financial intermediation and the supply of external financing to various actors in the economy.

Large scale government support (in the form of liquidity support and recapitalization).

Large scale increase in central bank reserves.

Açıklama:

If your answer is wrong, please review the “Types of Economic Crisis.” section.
A financial crisis is often associated with one or more of the following phenomena (Claessens and Kose, 2013, 4-5):
• Substantial changes in credit volume and asset prices.
• Severe disruptions in financial intermediation and the supply of external financing to various actors in the economy.
• Large scale balance sheet problems (of firms, households, financial intermediaries, and sovereigns).
• Large scale government support (in the form of liquidity support and recapitalization).
Claessens, S. & Kose, M. A. (2013). Financial crises explanations, types, and implications. International Monetary Fund Working Paper No. 13/28.

Doğru Cevap: E

Soru 24

What are the measures taken by governments to eliminate or at least reduce the negative effects of economic crises on the economy are called?

Currency crises

Stabilization programs

First generation crisis models

Development policy

Arrow-Debrau Theorem

Açıklama:

If your answer is wrong, please review the “Stabilization Programs.” section.
Governments take various measures to eliminate or at least reduce the negative effects of economic crises on the economy. These measures are called stabilization programs.

Doğru Cevap: B

Soru 25

What is the most important feature that distinguishes the second generation crisis model from the first generation?

The second generation crisis models state that even if the fundamentals are strong, the speculative attacks could trigger economic crises.

The second generation crisis models state that currency crises depend on the fixed exchange rate system, the economic policies implemented by the government, and the behavior of the currency speculators.

The second generation crisis models show how deteriorations of balance sheets due to fluctuations in exchange rates and asset prices can lead to a financial crisis.

The second generation crisis models reveal that vulnerabilities in banks and financial systems can cause a financial crisis, even if there is no deterioration or imbalance in fundamentals.

The second generation crisis models can explain the Southeast Asia crisis.

Açıklama:

If your answer is wrong, please review the “Different Models of Currency Crises” section.

Doğru Cevap: A

Soru 26

Which below is not a crises in the global economy after the 1990s?

2010 European Sovereign Debt Crisis

European Exchange Rate Mechanism Crisis

2008 Global Economic Crisis

November 2000 and February 2001 crises

1997 Southeast Asian Crisis

Açıklama:

If your answer is wrong, please review the “Stabilization decisions implemented in Turkey” section.
The November 2000 and February 2001 crises emerged in Turkey as extension of the Southeast Asia crisis in 1997 and the Russian crisis in 1998

Doğru Cevap: D

Soru 27

Failure of the stabilization programs proposed by the IMF to ensure stability after the economic crisis in developing countries led to the questioning of the IMF.
Heterodox stabilization programs are a combination of orthodox stabilization programs and income policies.
Heterodox stabilization programs implement tight monetary policy, tight fiscal policy that is also launched in orthodox stabilization programs.
Which of the statements above are correct?

III

II-III

I-III

I-II

I-II-III

Açıklama:

If your answer is wrong, please review the “Heterodox Stabilization Programs” section.
Heterodox economic policies are used to refer to an unusual policy that is slightly different from the market economy, rather than the usual economic policies. The orthodox stabilization program has many disadvantages, such as failure in disinflation and its costs that cause severe decreases in economic growth. Therefore, the heterodox stabilization programs implemented in chronic high inflation countries, especially in Latin American countries in the mid-1980s, to overcome high inflation and debt crisis. Heterodox stabilization programs implement tight monetary policy, tight fiscal policy that is also launched in orthodox stabilization programs, and temporary income policies (what is meant by the income policy is the control of wages and prices for a certain period of time) to achieve rapid and sustained disinflation. In other words, heterodox stabilization programs are a combination of orthodox stabilization programs and income policies (Kiguel and Liviatan, 1992, 36).
Failure of the stabilization programs proposed by the IMF to ensure stability after the economic crisis in developing countries led to the questioning of the IMF since, contrary to the expectations, the proposed programs deepened the economic crisis (Bayraktutan and Özkaya, 2002, 2). Countries that are experiencing an economic crisis try to overcome it by implementing IMF-supported stabilization programs under the supervision andtechnical support of IMF which is also known as IMF stand-by arrangement that is based on tight monetary, tight fiscal policy and privatization within the framework of ‘Washington Consensus’.

Doğru Cevap: E

Soru 28

When did UK withdrew from the European Exchange Rate Mechanism (ERM)?

UK withdrew from ERM during the Brexit process?

UK was never a part of ERM.

UK withdrew from ERM at the beginin of 2008 Global Crisis.

UK withdrew from ERM after the 1992-1993 European Exchange Rate Mechanism Crisis.

UK withdrew from ERM at the 2010 European Sovereign Debt Crisis.

Açıklama:

If your answer is wrong, please review the “Economic Crises in the Global Economy After the 1990s” section.
Speculative attacks occurred as a result of the member states’ being unable to agree on a common monetary policy, and in 1992 the European Exchange Rate Mechanism (ERM) faced with crises. As a result, the UK and Italy’s foreign exchange reserves significantly decreased, Italy broadened its’ currency bands and the UK withdrew from the ERM.

Doğru Cevap: D

Soru 29

When was the ‘Transition to the Strong Economy Program-TSEP’ launched?

After November 2000 and February 2001 Crises.

After 2008 Global Economic Crisis.

After 2010 European Sovereign Debt Crisis.

At the 1978 and 1979 Stabilization Programs.

Just before 1994 Mexican Peso Crisis

Açıklama:

If your answer is wrong, please review the “November 2000 and February 2001 Economic Crises” section.
To eliminate instability and destruction caused by the crises of November 2000 and February 2001, the ‘Transition to the Strong Economy Program-TSEP’ was launched on April 14, 2001.

Doğru Cevap: A

Soru 30

Various sub-targets determined to reach the main objectives in TSEP. Which below is not one of the aforementioned sub-targets?

Establishing the legal infrastructure that provides transparency and efficiency in the state.

Rapid restructuring in the banking sector, thereby strengthening the relationship between the financial sector and the real sector.

Combatting and decreasing inflation continuously and decisively in the floating exchange rate system.

Decreasing the import spending and raise export revenue through export-oriented industrialization policy.

Permanently strengthening the public financing balance.

Açıklama:

If your answer is wrong, please review the “November 2000 and February 2001 Economic Crises” section.
The sub-targets determined to reach the main objectives in TSEP can be listed as (CBRT, 2001, 12-13):

In the floating exchange rate system, combatting and decreasing inflation continuously and decisively.

Rapid restructuring in the banking sector, thereby strengthening the relationship between the financial sector and the real sector.

Permanently strengthening the public financing balance.

Creating an income policy, where the relations between employees and employers are determined based on compromise, and wages and salaries are determined in line with inflation.

Establishing the legal infrastructure that provides transparency and efficiency in the state.

Therefore, it was aimed to make 15 legal regulations in the following four areas within the framework of TSEP (CBRT, 2001, 13):
• Restructuring of the financial sector.
• Increasing transparency in the state and strengthening public finance.
• Increasing competition and economic effectiveness.
• Strengthening social solidarity.
CBRT (The Central Bank of the Republic of Turkey). (2001). Türkiye’nin Güçlü Ekonomiye Geçiş Programı. Viewed on: 12.12.2019, available at: https://www.tcmb.gov.tr/wps/wcm/connect/ daea59cb-6b14-498f-9b4a-87e8aa58cbbe/ program+%281%29.pdf?MOD=AJPERES&CA CHE=NONE&CONTENTCACHE=NONE.

Doğru Cevap: D

Soru 31

What is the unexpected and severe deviations in real and financial indicators called?

Economic crises

Devaluation

Inflation

Current account deficit

Stagflation

Açıklama:

Introduction
According to a general definition, the economic crisis is the deterioration in an economy that occurs unexpectedly and with great severity which significantly affects the economic activity. More precisely, the economic crisis is the unexpected and severe deviations in real and financial indicators.

Doğru Cevap: A

Soru 32

Which of the following is not a property of financial crisis?

Large increase in the investment and employment of the firms

Substantial changes in credit volume and asset prices

Severe disruptions in the supply of external financing to various actors in the economy

Large scale balance sheet problems of firms and households

Large scale government support in the form of liquidity support and recapitalization

Açıklama:

TYPES OF ECONOMIC CRISES
A financial crisis is often associated with one or more of the following phenomena :

Substantial changes in credit volume and asset prices.

Severe disruptions in financial intermediation and the supply of external financing to various actors in the economy.

Large scale balance sheet problems (of firms, households, financial intermediaries, and sovereigns).

Large scale government support (in the form of liquidity support and recapitalization).

But there are not and increases of investment of the firms and probably unemployment rate increases during financial crises

Doğru Cevap: A

Soru 33

Which of the following is not a type of financial crises?

Interest rate crisis

Currency Crisis

Banking Crisis

Systemic Financial Crises

Sovereign Debt Crisis

Açıklama:

TYPES OF ECONOMIC CRISES
Financial crises take place in various ways, and there are four different financial crisis definitions depending on the source to distinguish them. These are currency crisis, banking crisis, systemic financial crises, and sovereign debt crisis. Interest rate crises is not one of them.

Doğru Cevap: A

Soru 34

In addition to the speculative attacks on the currency, which of the following causes the currency crisis?

The inability to finance the current account deficit

Inflation and stagnation at the same time

Very high levels of unemployment

Inability to decrease the government debt

The lack of foreign direct investment to the production sectors

Açıklama:

In addition to the speculative attacks on the currency, the inability to finance the current account deficit causes the currency crisis.

Doğru Cevap: A

Soru 35

The deficits in the current account must be financed by which of the following?

Net capital inflow

IMF credit

Foreign Direct Investment

Private debt

Debt equity swap

Açıklama:

Currency Crisis
According to the balance of payments definition which is a statistical report of all transactions between a country and the rest of the world over a period of time, the sum of all transactions recorded in the balance of payments must be zero, so deficits in the current account must be financed by net capital inflow.

Doğru Cevap: A

Soru 36

Which of the following is not a factor that causes banking crises?

A rise of interest rates

High leverage balance sheets of banks

Macroeconomic shocks

Risky banking transactions

Dependence on short-term foreign resources

Açıklama:

The banking crisis may arise from the institutional structures of banks, namely their high leverage balance sheets, macroeconomic shocks, risky banking transactions, intense competition, poor management, institutional weakness and dependence on short-term foreign resources and as well as from bank runs (also called as a run at the bank).

Doğru Cevap: A

Soru 37

What is called the overlap of the banking crisis and the currency crisis?

Twin crises

Systemic Financial Crises

Sovereign Debt Crises

Exchange rate crises

Institutional crises

Açıklama:

The overlap of the banking crisis and the currency crisis is called the twin crises. The damage caused by the twin crises is more severe than a single crisis.

Doğru Cevap: A

The spread and severity of economic crises among countries depend on their international economic relations. Which one of the following flows are to measure these economic relations?

international goods flows
international service flows
international trade flows
international capital flows

I-II-III

I-II-III-IV

II-III-IV

I-II-IV

I-III-IV

Açıklama:

The spread and severity of economic crises among countries depend on their international economic relations, which are measured with international goods flows (foreign trade); international service flows (tourism, transportation, consultancy, etc.); international factor flows and international capital flows.

Doğru Cevap: D

Soru 42

A financial crisis is often associated with which of the following phenomena?

Substantial changes in credit volume and asset prices.
Severe disruptions in financial intermediation and the supply of external financing to various actors in the economy.
Large scale balance sheet problems
Large scale private sector support

I-II

III-IV

I-II-III-IV

I-II-III

II-III-IV

Açıklama:

A financial crisis is often associated with one or more of the following phenomena:
• Substantial changes in credit volume and asset prices.
• Severe disruptions in financial intermediation and the supply of external financing to various actors in the economy.
• Large scale balance sheet problems (of firms, households, financial intermediaries, and sovereigns).
• Large scale government support (in the form of liquidity support and recapitalization).

Doğru Cevap: D

Soru 43

What are the types of financial crisis?

currency crisis
banking crisis
incremental financial crises
sovereign debt crisis

I-III-IV

I-II-IV

I-II-III-IV

II-III-IV

I-II-III

Açıklama:

Financial crises take place in various ways, and there are four di erent financial crisis definitions depending on the source to distinguish them. ese are currency crisis, banking crisis, systemic financial crises, and sovereign debt crisis.

Doğru Cevap: B

Soru 44

Which items of the list below on currency crisis are correct?

It is often called sudden stop or capital account or balance of payments crisis.

A currency crisis involves a speculative attack on the currency resulting in a devaluation.

Sharply falling interest rates.

Imposing capital controls

I-II-III-IV

I-II-IV

I-III-IV

II-III-IV

I-II-III

Açıklama:

It is often called sudden stop or capital account or balance of payments crisis. A currency crisis involves a speculative attack on the currency resulting in a devaluation (or sharp depreciation), or forcing the authorities to defend the currency by expending large amount of international reserves, or sharply raising interest rates, or imposing capital controls

Doğru Cevap: B

Soru 45

Which items of the list below ont the causes of banking crisis are correct?

banks' low leverage balance sheets

macroeconomic shocks

risky banking transactions

intense competition

I-II-III-IV

I-II-III

II-III-IV

I-III-IV

I-II-IV

Açıklama:

Doğru Cevap: C

Soru 46

Which one of the below given information about the causes of the systemic financial crises are correct?

rational piling-on of debt

moral hazard induced by mispriced government-provided deposit insurance

complex relationships among counterparties

an unwillingness of dealers to trade; a failure of the Central Bank to provide liquidity as needed

unpredictable adverse shocks that come from outside the financial sector; and bank runs”

II-III-IV-V

I-II-III-IV

I-II-IV-V

I-III-IV-V

II-III-IV

Açıklama:

Doğru Cevap: A

Soru 47

Which one of the below given information about systemic financial crises are correct?

The sovereign debt crisis is the government’s failure to pay internal and external debts belonging to the public and private sectors.

Sovereign debt crises occur when the combination of the level of a government’s debt and the prospects of continued fiscal deficits couple to raise doubts about its ability or willingness to pay off all of its obligations at face value.

Additionally, sovereign debt crises can lead to a currency crisis, because the government’s failure to meet its debt obligations will increase capital inflows.

II-III

III

I-II

I-II-III

Açıklama:

The sovereign debt crisis is the government’s failure to pay internal and external debts belonging to the public and private sectors. Sovereign debt crises occur when the combination of the level of a government’s debt and the prospects of continued fiscal deficits couple to raise doubts about its ability or willingness to pay o all of its obligations at face value.
In III it says that "the government’s failure to meet its debt obligations will increase capital inflows" which is unlikely. So any choice including III is wrong.

Doğru Cevap: C

Soru 48

Which one of the below given information about orthodox stabilisation programs are correct?

Orthodox economic policy is a term that refers to the application of conventional and traditional economic policy.
These policies contradict the logic of the market economy as they are experienced policies.
Orthodox stabilisation programs are recommended to countries to overcome high inflation and balance of payments problems in the 1950s and 1980s.

III

I-II-III

I-II

II-III

I-III

Açıklama:

Orthodox economic policy is a term that refers to the application of conventional and traditional economic policy.
These policies do not contradict the logic of the market economy as they are experienced policies.
Orthodox stabilization programs are recommended to countries to overcome high inflation and balance of payments problems in the 1950s and 1980s.

Doğru Cevap: E

Soru 49

Turkey implemented an IMF-supported orthodox stabilisation program on August 4, 1958, to achieve price stability and troubleshoot the balance of payments. Which one fo the following information on decisions taken within this framework are correct?

The prices of PEE products increased, thereby aiming to reduce operating losses that impose a burden on the budget.

Foreign trade was liberalised, that is, export and import transactions facilitated, and imports were allowed to be done quarterly.

A strict monetary policy was implemented. The loans extended by commercial banks and the Central Bank were limited.

I-II

I-II-III

II-III

III

Açıklama:

Turkey implemented an IMF-supported orthodox stabilisation program on August 4, 1958, to achieve price stability and troubleshoot the balance of payments. The decisions taken within this framework can be brie y listed as follows

As of August 4, 1958, the multiple currencypractices were introduced in foreign exchange transactions. ere were di erent exchangerates for export and import. Turkish Lira (T) was devalued in proportion of 68.9%.

Foreign trade was liberalized, that is, exportand import transactions facilitated, and imports were allowed to be done quarterly.

A strict monetary policy was implemented.e loans extended by commercial banks and the Central Bank were limited.

Tight fiscal policy had been applied, it had been aimed to reduce public expenditures and achieve budget balance. However, this policy could not be maintained.

The prices of PEE products increased, thereby aiming to reduce operating losses that impose a burden on the budget.

Difficulty in external payments was eliminated with the stabilisation program. 420 million United States dollars ($) foreign debt was postponed or consolidated and Turkey borrowed $359 million from the USA, OECD, and IMF.

Doğru Cevap: B

Soru 50

Which one of the following information on the decisions taken in the stabilisation program in 1978 and 1979 are correct?

Prices of PEE’s were increased to reduce the budget burden.

Government spending was reduced and financing government with Central Bank resources was stopped.

Trade deficits were reduced by export incentives and import restrictions.

Interest rates decreased, decreases in wage and salary narrowed, and incentives in the agricultural sector were contracted.

I-II-III

I-II-III-IV

II-III-IV

I-III-IV

I-II-IV

Açıklama:

Some of the decisions taken in the stabilization program in 1978 and 1979 are as follows :

Prices of PEE's were increased to reduce the budget burden.

Government spending was reduced andfinancing government with Central Bank resources was stopped (stop monetizing the debt).

Trade deficits were reduced by export incentives and import restrictions.

Interest rates increased, increases in wage and salary narrowed, and incentives in the agricultural sector were contracted.

Doğru Cevap: A

Turkısh Economy (ENG) - Tüm Sorular

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