International financial markets

1. What is the difference between a fiscal asset and cover asset? A monetary asset is an asset whose economic value arises not from its sensible embodiment but from a contractual consanguinity: stocks, bonds, bank deposits, currency, etc... whereas a tangible asset has a physical existence, such as gold, equipment, and real estate. 2. What is the staple fiber discover in determining the value of monetary asset? The basic principle to determine the price or value of a pecuniary asset is the evaluation of the present value of all(prenominal) expect future cash flows. 3. What atomic number 18 the two basic component parts of a financial asset? The send-off basic role of a financial asset is to be a medium of flip-flop in transactions, that is to say to conveyance funds on financial markets. The second basic role of a financial asset is to redistribute unavoidable risks associated with cash flows, through its liquiditys function. 4. Give ternary reasons for the greater integration of financial markets throughout the world. Globally, the greater transnational integration of financial markets empennage be explained by the relaxation behavior of trade and the cross-border large(p) flow. More deeply, it is the result of 3 factors: - Technology, which has provided the communications infrastructure obligatory for international financial transactions to be conducted.

- Customers, who are searching for the lowest cost products and services that concord provided a doctor market for international financial activities. - pecuniary services providers (seeking a return on their capital, both financial and intellectual), ! who have create the product engineering skills and innovation necessary to undertake cross-border financial activities. 5. Explain why derivative instruments are called derivative? In chemistry, a derivative is a substance created from a primary winding compound, by chemical reaction. In linguistics, it is a word that finds his reservoir in another one. (e.g. electric- electricity). If you want to get a liberal essay, order it on our website: OrderCustomPaper.com

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