Money And Capital Markets

Running Head : 1 ) If we follow the money and great markets around the dry land each day it short becomes observable that interest order and asset prices in incompatible markets run away to move unitedly , albeit with leads and lags Why do you think this is soInterest range and asset prices are consequential tools in determining establishment policies (Andrew , 2002 . It is a trend that these two hunting down to follow a analogous trend to the highest degree every over the world , though delays or impediments whitethorn occur . The reason for this is that the coetaneous world is now , what is popularly known as a global village . As countries are connected together through trade , exports , imports , roads and channels , it is inevitable that the make of one state of matter provide spill into the other . For p ractice session if one country is experiencing inflation another country importation goods form it leave alone feel the effect of higher prices .

This makes governments tend to follow similar economic policies The interest rate in this regard is an important tool and as seen today all countries from US to UK to mainland China is moving to cut their interest rates . Lags occur because or so countries are slow to respond to market conditions maybe because the spillover personal effects take a longer time to materialize2 ) What is the family relationship amongst the process of creating financial assets and liabili ties and the acts of saving and enthronemen! t ? Why is that relationship important to your financial and economic well-beingFinancial assets and investment...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

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