What are the motives for using international financial market?

What are the motives for using international financial market?

to take advantage of favorable economic (e.g. to reap the benefits of international diversification. to reap the benefits of diversification. against their own.

Why do financial institutions prefer to provide credit in financial markets outside their own country?

Some financial institutions prefer to provide credit in financial markets outside their own country because they want to diversify their credit so that they are not dependent on single country’s economic conditions. Furthermore, they can earn more in foreign financial markets that the level of interest rate is high.

What is the function of the international money markets briefly describe the reasons for the development and growth of the European money market?

Growth of the European money market was largely due to regulations in the U.S. that limited foreign lending by U.S. banks; and regulated ceilings placed on interest rates of dollar deposits in the U.S. that support deposits to be placed in the Eurocurrency market where ceilings were not exist.

What is international finance market?

Meaning  The international financial market is the worldwide marketplace in which buyers and sellers trade financial assets, such as stocks, bonds, currencies, commodities and derivatives, across national borders.

What are the motives for investment?

Investment objective is the motive for which investment is made. Some investors may invest fund for regular income while others may prefer capital gain. In general, investment is concerned with risk taking activity for future returns over a long period which is not necessary to be marketable in short run.

Why would a bank want to participate in syndicated euro credit loans?

ANSWER: A large MNC may want to obtain a large loan that no single bank wants to accommodate by itself. Thus, a bank may create a syndicate whereby several other banks also participate in the loan.

What are the objectives of money market?

The objectives of the money market are to implement the monetary policy of the country. Monetary policy has three main objectives — growth, equity and price stability. The objective of the monetary policy in the first decade of planning was the revival of traditional weapons of monetary control.

What are the objectives of international finance?

All however, share the following goals and objectives: to reduce global poverty and improve people’s living conditions and standards; to support sustainable economic, social and institutional development; and. to promote regional cooperation and integration.

What are the basic concepts and purpose of international finance?

International finance is the study of monetary interactions that transpire between two or more countries. International finance focuses on areas such as foreign direct investment and currency exchange rates. Increased globalization has magnified the importance of international finance.

What is the motivation for companies to seek funding or financing?

Businesses need finance for a variety of different purposes, but there are some common reasons why businesses apply for funding. Reasons can include business grants and loans for working capital, to buy machinery, to hire more staff, or even re-finance existing loans to reduce monthly costs.