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.
You might also like to view...
Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (8) might represent
A. the services of firefighters. B. automobile purchases by the state of Maine. C. subsidies to farmers. D. personal income taxes.
Which of the following statements is true?
A) The production possibilities curve of a nation is fixed in the long run. B) The production possibilities curve can only shift to the right. C) The production possibilities curve of an economy is concave to the origin. D) The slope of the production possibilities curve represents the ratio of the marginal cost of producing goods.
Which of the following concepts cannot be illustrated by the production possibilities frontier?
a. efficiency b. opportunity cost c. equality d. trade-offs
"China is not a typical developing nation." Which of the following economic features is most likely to justify this claim?
A. The government of China spends a significant portion of its revenue on national defense. B. China has a large trade deficit with the United States. C. The Chinese government favors a freely floating exchange-rate policy. D. China has a high national saving rate.