Flashcards in Definitions Deck (77)
is concerned with the determination of income, consumption over time, and linking 2 or more international markets.
Balance of Payment
statistical statements of all economic transactions between Australian residents and the world over a particular period.
market in which one currency is bought and sold for another currency.
buying and selling of currencies between banks.
market for short term assets and liabilities that are denominated in currencies other than that of the country in which they are held.
short term assets and liabilities denominated in currencies other than that of the country where they are issued.
banks dealing in short term assets and liabilities denominated in currencies other than that of the country where they are located.
banks operations with non-residents in both domestic and foreign currency, and residents in foreign currency.
Euro Commercial Paper
short-term unsecured promissory note issued in currency other tan that of the country in which it is issued
- maturity: 60-180 days
- bearer instrument
- interest paid on maturity
short term unsecured promissory notes issued in a currency other than that of the country in which it is issued
- maturity: 2-4 years
- bearer instrument
- interest paid semi-annually
fixed interest securities
fixed interest securities that are issued in a foreign market denominated in the currency of the country of issue
fixed interest securities that are issued in a foreign market denominated in the currency other than that of the country of issue.
market in which shares are traded and issued
International equity market
primary and secondary markets for international equities
value of the shares issued by a company
Euro equity market
market in which euroequity is issued and traded
an equity sold to investors in more than one national market other than the country where the company is domiciled
American Depository Receipts (ADR)
negotiable certificate issued by a US bank representing a specified number of shares in a foreign stock traded on the US exchange
price of one currency in terms of another
exchange rate for immediate delivery
agreement you make for delivery at some specific future rate
- buy > sell
- increase S = appreciation of domestic
- sell > buy
- increase S = depreciation of domestic
the rates at which the bank buys/sells
(spread) difference between buy and sell rates
ER between two currencies computed by reference to a third currency
Effective exchange rate
measure of the value of one currency in terms of more than one other currency
Relative exchange rate
ratio of ER in a particular period to the value of the same ER in a base period
Vt = St/S0