1. Why Turkkish Lira take down ?

Answer :
- Because US government imposed sanctions on NATO allies in response to continued
detention of an American Evangelical Priest, accused of involvement in 2016 Turkish coup
attempt.
- The announcement by Trump government that doubled steel and aluminium tariffs on
August 10.
- The crisis has been exacerbated by investor fears stemming from aggressive criticism by
Turkish President Recep Tayyip Erdogan about what he called an "interest rate lobby", and
his continued refusal to raise interest rates . An action that should be carried out by the
Turkish central bank but has not been done in this past year.
- Triggered by an extraordinary dispute between two powerful populists, Donald Trump and
Recep Tayyip Erdogan, and exacerbated by Erdogan's eccentric economic worldview.

2. What the impact of Turkish crisis for a several big country in Europe ?
Answer :
Bank who concentrate invest in Turkey as Spain, Italy, and France will be bankrupt. Cause they
was still shaken by the impact of the global financial crisis and Europe's debt crisis.

3. What the impact of Turkish Crisis for Indonesia ?

Answer :
Indonesia is a developing country that still relies on foreign investors where the majority use
dollars. If Turkish Crisis continues, it will damaged Indonesia and can make all investors
withdraw their capital, there will increase an interest rates of state debt and will drain the
country’s foreign reserves which is the end of Indonesia & Indonesia will take (again) monetary
crisis.

4. What do you know about QE (Quantitative Easing) ?

Answer :
QE, monetary policy non-conventional and used by Central Bank to prevent decrease the money
supply when standart monetary policy ineffective. Central Bank enforces QE by buying financial
assets in a certain amount from commercial banks and other private institutions, so it will
increasing the monetary base.
This is different from the policy of buying or selling government bonds aimed at maintaining
market interest rates on certain targets.

5. Federal Reserve tightens monetary policy and raises interest rates, why it can happen ?
Answer :
Cause United State have normalized monetary policy. The policy was adopted to respond
pressure that emerged as the economy began and mitigate risks that could arise from
implementation of accommodative monetary policies that were too long.
Normalization of monetary policy is pursued through an increase interest rates and followed by
balance sheet reduction.
6. What happen now about relation between Donald Trump and Recep Tayyip Erdogan after crisis
of Lira take down ?
Answer :
The relationship still heated up. US government want release of Andrew Burson, who until now
was arrested by Turkish government because he was stated to related the coup.

7. How Chinese Government to face concerns of global financial crisis ?

Answer :
- Chinese Government will stopped in helping weakning money markets after 2009.
- China flooded its own economy with credit and make a massive construction boom.
- Improving growth prospects of most developing countries that export commodities in the
process.
- Maybe, this is one reason that China give a large debt with a long payback period.

8. In paragraph 7, there is a word in italics, what is mean of the word and explain about it!
Answer :
Idiosyncratic, is term in financial risk that is caused by internal factors, but risk that are
influenced from outside, such as national economics policies, shareholders, or international
policies.

9. What the impact will occur if develoved countries continued to tighten their monetary policy ?
Answer :
There will a global economic crisis that will worsen the situation of the entire country.The
wheels of economy in each country will stalled, rising rates of poverty and social inequality,
starvation and many countries will bankrupt.

10. How does Turkish Government restore about Lira ?

Answer :
- Told all citizens and businessmen to exchange foreign currency with Lira. So that foreign
exchange reserves could return to normal
- Looking for new cooperative alliances like Russia and China