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- 2) explain the differences between the following two fundamental factors of finance in international processes -The international transfer of funds - Transfer pricesWrite a short proposal on “Foreign Direct Investment, Financial Market Development and Economic GrowthYou expect the Central bank to conduct expansionary monetary policy. What will be the impact on the following industries, would you recommend investing in them? : a) Gold mining b) Housing construction
- Which of the following are suppliers of loanable funds? households government units foreign investors All of these choices are correct Which of the following do foreign suppliers of funds in the U.S. financial market assess? interest rates offered on financial securities their total wealth foreign investors All of these choices are correct.Use the Mundell-Fleming model with perfect capital mobility, for each economy, analyze why the effectiveness of monetary, fiscal, and trade policies depend on the exchange rate regime in place in a country.Financial sector plays a crucial role in the accumulation of capital and the production of goods and services. In many developing nations, limited financial markets, instruments, and financial institutions, as well as poorly defined legal systems, may make it costlier to raise capital and may lower the return on savings or investments. They also help to facilitate the international flow of funds between countries. Indian financial market consists of two major segments: (a) Money Market; and (b) Capital Market, While the money market deals in short-term credit , the capital market handles the medium term and long-term credit. The money market is a market for short-term funds, which deals in financial assets whose period of maturity is up to one year. It should be noted that money market does not deal in cash or money as such but simply provides a market for credit instruments such as bills of exchange, promissory notes, commercial paper, treasury bills, etc. These financial…
- Explain the International Fisher effect and Interest Rate Parity. If these parity exists, explain the justification for MNCs to invest excess cash in foreign country. Provide examples in which situation the excess cash investment would gain higher rate of return that the one offered at the home market.Capital and the production of goods and services. In many developing nations, limited financial markets, instruments, and financial institutions, as well as poorly defined legal systems, may make it costlier to raise capital and may lower the retum on savings or investments. They also help to facilitate the intemational flow of funds between countries. Indian financial market consists of two major segments: (a) Money Market; and (b) Capital Market. While the money market deals in short-term credit, the capital market handles the medium term and long-term credit. Q7. (Case Study Problem) Financial sector plays a crucial role in the accumulation of The money market is a market for short-term funds, which deals in financial assets whose period of maturity is up to one year. It should be noted that money market does not deal in cash or money as such but simply provides a market for credit instruments such as bills of exchange, promissory notes, commercial paper, treasury bills, etc. These…Describe the market for foreign investment.
- apart from setting up development finance institutions what are some of the interventions instituted by successive givernment and other global partners to improve financial insclusion.Bridge the financing gap in order to serve as catalyst for economic growth in developing countries.1. A. Identify and explain the functions of financial intermediation. B. Why does the lack of an efficient and effective system of financial intermediation act as an impediment to the economies in developing countries (comprehensive answer required)?What do managers use to evaluate domestic and international capital investment projects? A) capital budgeting B) multilateral netting C) net present value D) transfer pricing E) parent's perspective
