Deneme Sınavı Soruları

Always results in an external surplus.

Leads to a constant interest rate and no effect on capital flows.

Results in a decrease in national income and reduced imports.

Depends on whether the current account deficit or the capital and financial account surplus dominates.

Fscal policy has no impact on the external balance.

Free capital mobility, independent monetary policy, and fixed exchange rate policy cannot all be implemented simultaneously in an economy.

An economy can simultaneously achieve high employment, low inflation, and sustainable economic growth.

A central bank can target inflation, unemployment, and exchange rates simultaneously without any trade-offs.

Governments can impose capital controls, maintain a fixed exchange rate, and pursue an expansionary fiscal policy without constraints.

An economy can control both its interest rates and exchange rates freely while maintaining completely open capital accounts.

Primary income

Secondary income

Financial flows

Goods trade

Services trade

When real income (Y) increases.

When the interest rate (i) increases.

When inflation risk increases.

When the liquidity of other assets increases.

When the price level (P) decreases.

Increased market stability and investor confidence.

Strengthening of domestic currency value through consistent policy actions.

Reversal of capital flows leading to potential devaluation of the domestic currency.

Enhanced transparency and predictability in central bank operations.

Reduction in speculative trading due to clear government policies.

The exchange rate fluctuates without the central bank trying to control or prevent a change in its value.

The exchange rate is fixed by international treaties.

The central bank actively manages the exchange rate through interventions.

Exchange rates are adjusted according to predetermined rules.

Currency values are pegged to a stable foreign currency or a basket of currencies.

LM curve

IS curve

BP curve

AD curve

AS curve

CBI has no clear impact on inflation rates.

CBI is inversely related to economic growth.

Independent central banks tend to achieve lower inflation rates.

Less independent central banks are more successful in controlling inflation.

CBI directly correlates with higher inflation in developing countries.

The relationship between the price level and the equilibrium interest rate.

The total supply of goods and services by the economy at different wage levels.

The relationship between the price level and national income or output.

The equilibrium between inflation rates and wage increases.

The impact of monetary policy on national output.

To regulate international trade exclusively.

To achieve internal and external economic balances simultaneously.

To focus solely on domestic economic stability.

To prioritize financial stability over sustainable development.

To disregard the effects of global economic developments.

It represents the external balance in addition to equilibrium in the goods and money markets.

It dictates the equilibrium condition for the domestic sector.

It replaces the IS curve in determining aggregate supply.

It has no impact on aggregate demand or supply.

It determines the flexibility of the price levels.

The effects of trade policies on domestic employment rates

The role of international reserves in stabilizing national economies

The effects of monetary and fiscal policies in exchange rate systems

The impact of taxation on international trade

Strategies for achieving perfect capital immobility

Trade flows

Trade deficit

Trade balance

Trade surplus

Trade decrease

500

600

700

800

1000

Price indices and their weights differ in each country.

All goods and services cannot be traded internationally.

There are government interventions that may prevent price equality between countries.

PPP has limit on the service sector, thus the service trade may be limited internationally.

PPP neglects capital flows altogether.

Disposal of non-produced assets- The capital account

Export of goods- The capital account

Purchase of financial assets- The capital account

Income payments- The capital account

Unilateral transfers- The current account

Higher/Smaller/Smaller

Less/ Smaller/Bigger

Higher/Smaller/Bigger

Less/ Smaller/Smaller

Less/ Bigger/Smaller

Sales/Payments/ Export

Increase in financial liabilities/ Receipts/ Import

Increase in financial assets/ Acquisition/ Export

Export/ Increase in financial assets/ Receipts

Payments/ Acquition/ Import

The indirect quotation method is called as American terms.

The direct quotation method is defined as the price of domestic currency in terms of foreign currency.

The indirect quotation method is defined as the price of foreign currency in terms of domestic currency.

The exchange rate applied by banks in foreign currency sales transactions is called bid rate.

The exchange rate applied in purchase transactions is called as ask rate.

Levels of prices

Levels of exchange rates

Change in the price level

Change in the exchange rate

Base level of the currency