Describe at least three ways that global capital markets are different today from what they were like in the late nineteenth century
What will be an ideal response?
There are more varieties of financial instruments available. A major difference is that exchange rates were fixed then which meant less exchange rate risk and uncertainty then and now higher costs and transactions volume given the need to manage that risk. Transaction costs are significantly lower today than in the past.
Economics
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The risk of making a loan is
A) earning profits that are too high and cause higher taxes. B) the risk that lender does not pay. C) the risk that the borrower does not pay. D) called "default risk" when taxes are not paid.
Economics
Why is the U.S. trade deficit almost always larger than the U.S. current account deficit?
What will be an ideal response?
Economics