Exam 7: Financial Markets

One way to characterize the global financial marketplace is through its assets,its institutions,and its:

The global financial marketplace can be characterized by its assets,institutions,and linkages.

Nancy recently invested in U.S.Treasury bonds to give to her young nieces and nephews. These bonds are examples of what component of global financial markets?

The primary purpose of exchange rates is to facilitate trade among countries.

_________ is a bank deposit in a currency other than the currency of the country where the bank is located.

Capital to fund business comes in two varieties:

A(n)___________ bank is an unrelated bank (by ownership)that is based in a foreign country.

The two cities that have grown in prominence as central players in global finance more than any other city in recent years are:

Spot rates are contracts that provide for two parties to exchange currencies on a future date at an agreed upon exchange rate.

In 1999,which three currencies dominated,with 70 percent of all global currency trading?

A(n)________ bank is an unrelated bank (by ownership)based in a foreign country.

The purchasing power parity theory states that the relative prices of any single good between countries,expressed in each country's currency,is representative of the proper or appropriate exchange rate value.

The 2007-2009 global financial crisis originated in the petroleum industry.

The 1980s and 1990s saw the growth of the Japanese yen as a pillar of size and strength.

Describe the purpose and outcome of the Bretton Woods agreement of 1944.

Carol recalls that during the 1980s,a single currency dominated. More recently however,she recalls how that same currency performed sluggishly in the later half of the 1990s. The currency that fits this description is the:

For Andrew,a Greek citizen,one of the benefits of joining the European Union and adopting the euro is:

_________ is the government policy to protect and promote the home-country financial and non-financial companies first.

Describe the global financial marketplace in terms of its three categories. How do they relate to the health and stability of the global financial market?

__________ intervention is the process governments use to alter the current value of their currency by buying or selling their own currency in the market using reserves of other major currencies.