BUS 200 Lecture 9: Chapter-9
Document Summary
Financial crisis -it affects our ability to raise money and our customer"s ability to raise money. Raising capital: sell shares equity, borrowing debt (bonds/loans) Bonds: certificate of debt the company sets itself like a bank. What are the roles of the imf and world bank. World bank: fund development project that provides loans to developing countries. What role did foreign exchange play in the asian crisis of 1997 (p. 319-21) Foreign exchange cause currency devaluation in asian countries. They are an international bond that is not denominated in a currency not native to a country where it is issued. Brenton woods- after wwii a lot of countries met to restore stability to foreign exchange. Basel switzerland v. 3} setting standards for the banking industry globally. The standards might not fit every bank or country. Another downside might be that the membership can change. Banks want to make money by charging interests on loans.
