International financial markets

1. What is the difference between a fiscal asset and concrete asset? A monetary asset is an asset whose rate 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 funds, equipment, and real estate. 2. What is the introductory hulk in determining the value of pecuniary asset? The basic principle to determine the price or value of a financial asset is the evaluation of the present value of each expect future cash flows. 3. What atomic number 18 the two basic situations of a financial asset? The premier(prenominal) basic role of a financial asset is to be a medium of flip-flop in transactions, that is to say to enchant 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 integrati on of financial markets throughout the world. Globally, the greater transnational integration of financial markets earth-closet be explained by the relaxation behavior of trade and the cross-border pileus flow. More deeply, it is the result of 3 factors: - Technology, which has provided the communications infrastructure imposed for international financial transactions to be conducted.

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

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