adownload_doc-4.php

adownload_doc-4.php - 9/29 Economics and Securities...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics and Securities Exchange (Stock Market) - both require a method of exchange Give something to get something else in exchange. o Transfer of ownership or exchange In most economies in the world today what is the medium of exchange? o Answer: Money (All countries have a different medium of exchange) This is why we have the exchange rates – if you don’t take this into account you can mess up your project profit Exchange rates o A wide range of factors interact to determine the exchange rate level: Interest rates Inflation A country’s balance of trade/payments Expectations about what will happen in the future London Currency Market – Centralized Currency Exchange o Think of it as interconnected plumbing systems. All tied together. When lending, borrowing, and exchange pass. Because it moves so fast, paper assets are often seen as liquid. Can lose – Money – Do Not – Have
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/19/2011 for the course BUS 100 taught by Professor Mo during the Fall '08 term at Indiana.

Page1 / 4

adownload_doc-4.php - 9/29 Economics and Securities...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online