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Financial System
Chapter: IV
MKT-305
Chapter Objectives
Discuss the purposes, development, and financial centers of the
international capital market
Describe the international bond, international equity, and
Eurocurrency markets
Discuss the four primary functions of the foreign exchange
market
Explain how currencies are quoted and the different rates given
Identify the main instruments and institutions of the foreign
exchange market
Explain why and how governments restrict currency
convertibility
International Capital Market
A capital market is a system that allocates financial resources
in the form of debt and equity according to their most efficient
uses.
Tokyo.
3.
Main Components of the
International Capital Market
Main components of International Capital Market are:
The international Bond
1.
International Equity
2.
Eurocurrency markets
3.
Main Components of the
International Capital Market
outside the issuer’s home country . Buyers include banks, mutual funds,
pension funds etc.
All the world’s currencies that are banked outside their countries of
3.
-World Bank