Exam 9: International Financial Markets

The ________ is a network of individuals, companies, financial institutions, and governments that invest and borrow across national boundaries.

The international bond market consists of all stocks bought and sold outside the issuer's home country.

The world's three most important financial centers are ________.

The exchange rate calculated using two other exchange rates is called the ________.

The market consisting of all the world's currencies that are banked outside their countries of origin is called the ________.

Given the globalization trend, the international capital market reduces the available set of investment opportunities.

An excess money supply creates a borrower's market, forcing down interest rates and the cost of borrowing.

Rates that the world's largest banks charge one another for loans are called ________.

The market consisting of all stocks bought and sold outside the issuer's home country is called the ________.

The international bond market consists of all bonds sold by issuing companies, governments, or other organizations ________.

An exchange rate of ¥117.87/$ indicates ________.

Scenario: Trader's Paradise Trader's Paradise is a global merchant that sells a variety of products. The company operates in 48 different countries (some developed, some developing) and some former communist countries. The company faces substantial risks given differing conditions in foreign exchange markets. -If Trader's Paradise purchases and sells the European Union euro simultaneously in different markets for profit, it would be called currency ________.

Through the international capital market, a company that is unable to obtain funds from investors in its own nation can seek financing from investors elsewhere.

Forward rates represent the expectations of currency traders and bankers regarding a currency's future spot rate.

Microcredit loans in developing countries typically average ________.

Which of the following is an exchange rate that requires delivery of the traded currency within two business days?

Eurobonds are popular because ________.

The process of aggregating the currencies that one bank owes another and then carrying out the transaction is called clearing.

In a quoted exchange rate, the currency with which another currency is to be purchased is called the ________.

Although London has a better location and the preferred time zone, New York dominates the foreign exchange market because the majority of the trades involve the U.S. dollar.