Class Notes (836,838)
Canada (509,920)
POLC99H3 (33)
Lecture

Lecture 05 Notes

2 Pages
65 Views
Unlock Document

Department
Political Science
Course
POLC99H3
Professor
Norla Carloff
Semester
Fall

Description
Multilateral Cooperation and Financial Markets Lecture 05 Foreign Exchange (FEX) Market 1 base currency# quote currency, e.g., $ is the dollar value of 1 Euro o Extremely liquid buyers and sellers at all times o This is true during high volatility as well o Mortgage are deep large quantities have to be sold in order to affect the marketing o Open 247 Twin prices o Quoted prices allows us to analyze reciprocal prices Crash proof o Reciprocity disallows crashes o When one decreases the other increases; hence no crash o Most of the foreign exchange market turnover occurs in the United Kingdon o USD is the currency most traded International Role of the Dollar: Vehicle currency reduces transaction costs o Trading goods and assets would be costly if the currency of each partner had to be accepted at each sale o Vehicle currencies are used to comba
More Less

Related notes for POLC99H3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit