Exam 7: Financial Markets

As a result of the 2007-2009 financial crisis,derivatives are no longer in use in the global financial marketplace.

The ________ eliminated the barriers between commercial and investment banks.

_______ rates are exchange quotations that do not include the U.S.dollar as one of the two currencies quoted.

__________ is the process of turning an illiquid asset into a liquid saleable asset.

Carlos is writing a report on the 2007-2009 financial crisis,where he must outline at least one method that may help resolve the crisis. Which of the following would be most likely to be included in his report?

Because the global financial market is made up of hundreds of different financial institutions rather than a central location,it can best be described as what kind of market?

The ___________ is a standard for international currencies in which currency values were stated in terms of gold.

_________ refers to supporting the home-country financial and nonfinancial firms first,and all others second.

The Bretton Woods agreement of 1944 led to the establishment of a bank that would provide funding for long-term development projects - the International Monetary Fund.

Which currency is experiencing dramatic growth in the post-2000 global business landscape?

The interest rate that is used most frequently in international loan agreements today is:

_______ is the process of turning an illiquid asset into a liquid saleable asset.

Leading up to World War I,the U.S.dollar was the dominant currency.

A(n)________ is the sale of debt or equity to a large investor,which is normally a one-time transaction in which the buyer intends to hold it until maturity or until it is repurchased by the firm.

_________ is the theory that the price of internationally traded commodities should be the same in every country,and hence the exchange rate between the two currencies should be the ratio of prices in the two countries.

The Bretton Woods agreement resulted in the establishment of what two organizations?

________ rates are contracts that provide for two parties to exchange currencies with delivery in two business days.

Describe possible remedies for the global financial crisis and ways to avoid a similar crisis in the future.

In the months following President Nixon's announcement of departure from the gold standard in 1971,the international monetary system was in chaos.

To avoid another global financial crisis,many countries and regulatory agencies are considering expansions on capital mobility.