International financial markets

1. What is the difference between a fiscal asset and concrete asset? A monetary asset is an asset whose treasure 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 currency, equipment, and real estate. 2. What is the radical rein in in determining the value of fiscal asset? The basic principle to determine the price or value of a financial asset is the evaluation of the present value of altogether expect future cash flows. 3. What atomic number 18 the two basic shares of a financial asset? The low gear basic role of a financial asset is to be a medium of flip-flop in transactions, that is to say to communicate 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 o f financial markets throughout the world. Globally, the greater transnational integration of financial markets heap be explained by the relaxation behavior of trade and the cross-border big(p) flow. More deeply, it is the result of 3 factors: - Technology, which has provided the communications infrastructure necessary for international financial transactions to be conducted.

- Customers, who are inquiring for the lowest cost products and services that concord provided a prepare market for international financial activities. - pecuniary services providers (seeking a return on their capital, both financial a nd intellectual), who have real 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 elementary compound, by chemical reaction. In linguistics, it is a word that finds his seed in another one. (e.g. electric- electricity). If you want to get a adequate essay, order it on our website: OrderCustomPaper.com

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