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- Which of the following is part of the payments system of the economy? A. currency B. demand deposits C. E-money D. all of the aboveHow can we measure whether short-term international capital markets are fully integrated or not? Does the available evidence indicate that they are integrated? Critically evaluate your answer.Define each following terms: p. American depository receipts (ADRs); repatriation of earnings q. Country risk; exchange rate risk; political risk; business climate
- Consider the parable of Robinson Crusoe and Friday discussed in section 10.3 of the text- describe the situation, and some key insights from this simplified example.What is ultimately the relation between the balance of trade and the balance of payments between countries?How do you determine and calculate return and risk on foreign exchange transactions?Give full definition of the market for foreign exchange.
