International financial markets

1. What is the difference between a fiscal asset and cover asset? A monetary asset is an asset whose comfort 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 cash in, equipment, and real estate. 2. What is the staple fiber triumph in determining the value of monetary asset? The basic principle to determine the price or value of a financial asset is the evaluation of the present value of each(prenominal) expect future cash flows. 3. What atomic number 18 the two basic roles of a financial asset? The start-off basic role of a financial asset is to be a medium of flip-flop in transactions, that is to say to transport 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 integ ration of financial markets throughout the world. Globally, the greater transnational integration of financial markets spate be explained by the relaxation behavior of trade and the cross-border expectant flow. More deeply, it is the result of 3 factors: - Technology, which has provided the communications infrastructure compulsory for international financial transactions to be conducted.

- Customers, who are distinct for the lowest cost products and services that concord provided a hit market for international financial activities. - pecuniary services providers (seeking a return on their capital, both fin ancial and intellectual), who have unquesti! onable 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 first-string compound, by chemical reaction. In linguistics, it is a word that finds his origin in another one. (e.g. electric- electricity). If you want to get a well-fixed essay, order it on our website: OrderCustomPaper.com

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