Suppose Turkey starts welcoming foreign investment with open arms. Specifically, it raises its interest rate to attract investors. How is this policy likely to affect the value of the Turkish Lira? Discuss the Credit$/$Debit effect on the corresponding account type, and use the increase or decrease in supply or demand to explain the valuation change, appreciation or depreciation, of Turkish Lira.

Answer $1$ if the account type is Current Account.

Answer $2$ if the account type is Capital Account.

Answer $3$ if the account type is Financial Account.

Answer $4$ if the account type is Official Reserve Account.

The increase in foreign investment in Turkey will result in a $($Debit or

Credit?$)$ in the account. The $($supply or demand?$)$

of Turkish Lira will $($increase or decrease?$),$ and the value of Turkish Lira will also $($appreciate or depreciate?$)$