1-68 What Is Globalization

question 38

Multiple Choice

1-68 What is globalization?

• A)The process that causes an FI to focus more intensely on their own domestic market.
• B)Acceptance of the Federal Reserve as the regulator of the world financial system.
• C)Usually refers to the initiation of GLOBEX,a new international financial communications and trading system.
• D)The evolution of markets and institutions so that geographic boundaries do not restrict financial transactions.
• E)Joint ownership of international electronic payments systems.

---

Definitions:

Compounded Quarterly

The process of calculating interest on the initial amount and any accumulated interest every three months.

Inflation Rate

The pace at which prices for goods and services ascend overall, causing the buying power to decrease.

Compounded Monthly

An interest calculation method where interest earned is added to the principal balance every month, increasing the amount of future interest accrued.

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal biannually, leading to interest on interest.