The Full Benefits of Globalization Could Be Reached While Minimizing

question 10

Multiple Choice

The full benefits of globalization could be reached while minimizing the costs assuming which of the following occur?

• A)countries standardize reporting of financial market information
• B)the surveillance of international organizations becomes more transparent and open
• C)a world government is established
• D)Both a and b are correct.

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Definitions:

Inflation

How fast the general price index for merchandise and services escalates, corroding the purchasing strength.

Spot Rate

The current market price of a currency, security, or commodity available for immediate delivery.

Interest Rate Parity

A theory asserting that the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and spot exchange rate.

T-Bills

Short-term government securities issued at a discount from their face value, maturing in one year or less.