FİNANSAL PİYASALAR VE KURUMLAR - Deneme Sınavı - 1

During Turkey’s currency crisis in 1994,output fell 6 percent, inflation rose to threedigit levels, the Central Bank lost half of its reserves, and the exchange rate (against the U.S. dollar) depreciated by more than half in the first three months of the year.

The 21 February 2001 crisis, which was also
a foreign currency crisis, was mainly caused
by high increases in the current account
deficit.

The Stability and Growth Pact, the Maastricht
Treaty, and the European Union focused
on the government debt and budget deficit
ratios ignoring the “excessive” debt ratios in
the private sector and this situation triggered
crisis in the financial sector.

The reason for the start of the crisis was that housing loans given with low interest rates, which were not paid back to the banks when the due dates came.

Ponzi finance is a high net worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company.