Distinction between debt and equity instruments, International Economics

Assignment Help:

Q. Why is it useful to make a distinction between debt and equity instruments?

Answer: Debt instruments such as bank deposits and bonds are repaid regardless of economic circumstances. Equity instruments for example a share of stock have a payoff that is linked to economic performances. Though remember the possibility of bankruptcy and the real return which is subject to domestic currency fluctuations.


Related Discussions:- Distinction between debt and equity instruments

International trade, explain the product cycle theory in international trad...

explain the product cycle theory in international trade

Macroeconomic policy-making and performance, Q. How did the international m...

Q. How did the international monetary system influence macroeconomic policy-making and performance during the interwar period (1918 - 1939)? Answer: Governments efficiently sus

Why do we observe the leontief paradox, Q. Why do we observe the Leontief ...

Q. Why do we observe the Leontief paradox? Answer: There are several possible answers that they may be categorized into three groups. One would argue that the theory or model

Economics, describe the U.S role in the world economy

describe the U.S role in the world economy

Wto, economic theories to explain free traden..

economic theories to explain free traden..

Interest rate differential according to the ppp theory, Q. Describe and exp...

Q. Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected p

What factors lie behind capital inflows to developing world, Q. Wha...

Q. What factors lie behind capital inflows to the developing world? Answer: Several developing countries have received a lot of capital inflows that lead them to an

Why the production distortion is indeed a loss to society, Q. The two dead...

Q. The two deadweight triangles are the Production distortion and Consumption distortion losses. It is simple to understand why the Consumption distortion constitutes a loss for

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd