Podcast
Questions and Answers
What impact does the increasing importance of international stock markets have on financial capital flow?
What impact does the increasing importance of international stock markets have on financial capital flow?
- It has no effect on financial capital flow
- It causes financial capital flow to become stagnant
- It hinders the flow of financial capital
- It facilitates the flow of financial capital to its most productive use (correct)
How do movements of stock prices across countries tend to behave as a result of the increased interdependence in the global economy?
How do movements of stock prices across countries tend to behave as a result of the increased interdependence in the global economy?
- They tend to become more similar (correct)
- They tend to become more diverse
- They tend to have no correlation
- They tend to become more volatile
What happens when the Federal Reserve raises U.S. interest rates by 1⁄2 of a percentage point?
What happens when the Federal Reserve raises U.S. interest rates by 1⁄2 of a percentage point?
- The spot rate for the dollar rises
- The dollar appreciates (correct)
- The demand for eurodollars decreases
- The eurodollar lending rate falls
What does the covered interest arbitrage parity indicate about investor behavior between domestic and foreign investments?
What does the covered interest arbitrage parity indicate about investor behavior between domestic and foreign investments?
How does the higher U.S. interest rate impact the demand for pounds in the spot market?
How does the higher U.S. interest rate impact the demand for pounds in the spot market?
What are the three components that gross international bank lending can be divided into?
What are the three components that gross international bank lending can be divided into?
What gives U.S. exporters the ability to leave dollars in an account in a foreign bank?
What gives U.S. exporters the ability to leave dollars in an account in a foreign bank?
What is the significance of Eurodollar markets on the international financial system?
What is the significance of Eurodollar markets on the international financial system?
What is the amount that will be paid to the lender when a bond matures?
What is the amount that will be paid to the lender when a bond matures?
How have countries' interest rates been affected by the increasing importance of international bond markets?
How have countries' interest rates been affected by the increasing importance of international bond markets?
