Deneme Sınavı Soruları

Richer economies have larger financial sectors

Globally, indirect finance is more common than direct finance.

Banks are the most important financial intermediaries worldwide.

Market capitalization of developed economies domestic companies as pertentage of GDP is lower than emerging markets.

In developed economies, banks, along with other financial intermediaries and equities markets, are larger and more effective.

Balance sheet flaws primarily affect the public sector, leading to budget deficits and high public debt-to-GDP ratios.

Financial crises can only occur as a result of external shocks, such as those seen in the global financial crisis.

Balance sheet weaknesses accumulate over time and can be triggered by significant shocks, whether external or domestic, leading to full-scale financial crises.

Financial institutions are immune to balance sheet weaknesses and are not affected by issues in the nonfinancial sector.

Balance sheet flaws are immediately noticeable and do not accumulate over time, preventing the possibility of financial crises.

During a financial crisis, banks increase lending to nonfinancial firms, thereby mitigating problems in the economy.

Financial crises typically lead to increased employment and higher aggregate demand due to increased risk-taking by banks.

Currency depreciation during a financial crisis reduces the debt burden of households and firms, leading to an expansion of economic activity.

Financial crises often result in banks becoming more cautious and reluctant to extend new loans, leading to layoffs, declining employment, decreased aggregate demand, and economic stagnation or contraction.

Financial crises have minimal impact on economic activity, as they are confined to the financial sector and do not spill over into the real economy.

The k-period return formula is designed solely for short-term investments, typically held for less than a year.

The k-period return formula is applicable only for investments held exactly for two years.

The k-period return formula allows for the calculation of returns for investments held for any duration ranging from one to k years.

The k-period return formula extends the calculation of returns beyond two years, catering to longer investment horizons.

The k-period return formula is redundant and offers no additional value beyond the standard return formula

Logarithmic returns are only useful when nominal asset values are large.

Linear and logarithmic returns are always similar regardless of the nominal asset values.

Logarithmic returns become more accurate as nominal asset values decrease.

Logarithmic returns offer simplicity in the multi-period return formula, particularly as nominal asset values increase.

Logarithmic returns are more complex to calculate compared to linear returns for multi-period analyses.

Richer economies have larger financial sectors

Globally, indirect finance is more common than direct finance.

Banks are the most important financial intermediaries worldwide.

Market capitalization of developed economies domestic companies as pertentage of GDP is lower than emerging markets.

In developed economies, banks, along with other financial intermediaries and equities markets, are larger and more effective.

Derivative Instruments

Foreign Exchange Instruments

Cash Instruments 

Debt-Based Instruments

Equity-Based Instruments

Asset diversification

Portfolio diversification

Derivative diversification

Swap diversification

Forward diversification

Future interest rate

Future value

An increase in interest rates

Effective interest rate

Annual value

Banking crises primarily originate from speculative attacks on domestic currencies, leading to a collapse of the exchange rate system.

Currency crises are caused by severe balance sheet weaknesses in one or several banks, affecting the entire banking sector.

Financial crises encompass both banking and currency crises, with the term "financial crisis" being used to refer to either.

Banking and currency crises are entirely distinct phenomena and do not overlap in theoretical models.

Financial crises are unrelated to balance of payments or capital account crises, as they have different underlying causes.

Interconnectedness of financial institutions and liquidity shortages

Soundness of individual financial institutions and their links with the government

Stability of foreign financial institutions and credit extension behavior

Soundness of individual financial institutions and the ability to issue government bonds

Interconnectedness of financial institutions and the ability to hedge against currency risk

The excess return is calculated by subtracting the stock's return from the risk-free rate.

The excess return is calculated by subtracting the risk-free rate from the stock's return.

The excess return is calculated by adding the stock's return to the risk-free rate.

The excess return is calculated by multiplying the stock's return by the risk-free rate.

The excess return is calculated by dividing the stock's return by the risk-free rate.

Risk aversion decreases on the eve of a crisis, leading to a decrease in risk premium and interest rates, and a strengthening of the domestic currency.

On the eve of a crisis, risk aversion increases, causing a decrease in risk premium and interest rates, and a strengthening of the domestic currency.

Risk aversion increases on the eve of a crisis, resulting in a rise in risk premium and interest rates, and pressure for depreciation on the domestic currency.

During a crisis, risk aversion decreases, causing a decrease in risk premium and interest rates, and a strengthening of the domestic currency.

Risk aversion remains constant during a crisis, leading to stable risk premium and interest rates, and minimal fluctuations in the domestic currency.

When the compounding is applied once a month.

When the compounding is applied once a year.

When the compounding is applied more than once a year.

When the compounding is applied more than once a month.

When the compounding is applied more every month.

Principal date

Specified date

Bond date

The maturity

The end

1.1 percentage points

2.9 percentage points

3.8 percentage points

 4.6 percentage points

5.0 percentage points

Interest rates for regular intervals in a year.

Interest rates for regular intervals in a month

Interest rates for inregular intervals in a year.

Interest rates for inregular intervals in a month.

Future value of an investment.

Cryptocurrency

Derivatives

Futures

Forwards

Swaps