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

What are the advantages and disadvantages of trade blocs, Question 1 What ...

Question 1 What are the advantages and disadvantages of trade blocs? Question 2 Identify and explain the various parameters of regional economic integration Question 3 D

WTO, Special and Differential treatment

Special and Differential treatment

Positive scale economies, Q . Is it possible that if positive scale econom...

Q . Is it possible that if positive scale economies characterize an industry, that its equilibrium can be consistent with purely competitive conditions? Explain how this would hap

#the classical theory of international trade title.., Critically evaluate t...

Critically evaluate the classical theory of international trade

Differencial treatment, difference between differencial treatment in revers...

difference between differencial treatment in reverse andspecial and differencial treatment

Offer Curve.., How to derive offer curve and its difference from reciprocal...

How to derive offer curve and its difference from reciprocal demand curve

Should the imf be abolished, Q. Should the IMF be abolished? Discuss...

Q. Should the IMF be abolished? Discuss. Answer: Arguments for eliminating the IMF must mention moral hazard and insistence on high interest rates and hasty structural

Customs union under conditions of oligopoly, using diagrams, corden''s theo...

using diagrams, corden''s theory of customs union under conditions of oligopoly and within the existence of external economics of scale.

Discuss the different types of letters of credit, Q. Discuss the different ...

Q. Discuss the different types of Letters of credit? Types: i. Revocable Letter of credit ii. Irrevocable Letter of credit iii. Deferred payment Letter of credit iv. Confirmed

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