course hero which of the following statements about global capital markets is false?

by Devante Bogisich 6 min read

Which of the following statements is true of the global financial system?

Which of the following statements is true of the global financial system?#N#Select one:#N#a. It consists of the institutional frameworks, rules, and procedures that govern how national currencies are exchanged for one another#N#b. It includes key players such as finance ministries and national stock exchanges but excludes commercial banks and central banks.#N#c. It is built on the activities of firms, banks, and financial institutions engaged in ongoing international financial activity.#N#d. Since the 1960s, the volume and structure of the global financial system has been reducing.

What happens if you buy from a supplier whose currency is depreciating against the individual's currency?

If an individual buys from a supplier whose currency is depreciating against the individual's currency, the individual will have to pay a larger amount of his own currency to complete the purchase.

What happens to interest rates in high inflation countries?

In most high-inflation nations, interest rates are increasing while the purchasing power of the national currency is plummeting.

When did the volume and structure of the global financial system decrease?

d. Since the 1960s, the volume and structure of the global financial system has been reducing.

Do companies prefer to use their own currency?

Companies have a tendency to prefer handling international business transactions with their own country's currency rather than with the currency of another country.

Why do volatile exchange rates have no effect on the international capital market?

c. Volatile exchange rates have no effect on the international capital market because it is smaller than the domestic market.

Is the pool of investors in domestic markets less than global markets?

a. The pool of investors in domestic markets is less than global markets

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