13
International Financial Markets
Collins Street, Melbourne, Australia∗
CHAPTER OBJECTIVES
Foreign currencies are bought and sold in the foreign exchange market and they are borrowed and lent in the international financial market. The present chapter deals with these markets. The objective is to:
- Analyse the distinctive features of the foreign exchange market and how transactions take place in the market.
- Delineate the features of the market for derivatives, such as the market for currency futures and currency options.
- Explain the multilateral sources of funds, especially international banks.
- Present a brief idea of how the international ...
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