BUSI 604 Chapter Notes - Chapter 5: U.S. Securities And Exchange Commission, Bretton Woods System, Fax
18 Aug 2016
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Chapter five: global financial markets and monetary systems. Promotes the exchange of goods and services across national borders: the price of goods and services exchanged is based on supply and demand in the global markets. Include both physical and virtual market places that make the cross-border exchange of goods and services between buyers and sellers possible. Importance to borrowers (2: expand the supply of money, reduce the cost of money. Importance to lenders (2: expanding lending opportunities, reducing risk. The economies of the world have become highly interdependent because of improvements in communication and transportation technologies and the lowering of barriers to trade. Businesses react to increased spending by ordering more raw materials to increase the production of goods. This stimulation of business activity increases the demand for labor and raises the demand for capital goods. Federal reserve bank: responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of money supply.
