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INTERNATIONAL FINANCE
International finance is concerned with the mobility of financial capital across the countries, and the problems and opportunities this mobility presents the individual countries. It would not be too inaccurate in present day context to say that while the international trade deals with the current account and international finance deals with the capital account of the BOPs. The issues like the choice of exchange rate regime and of the modern-day balance of the payments crises also fall firmly within the purview of the international finance.
Reform of international monetary affairs
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Analyze the effects of an increase in the European money supply on the dollar/euro exchange rate. Answer: The major points are: A raise in the European money supply will reduc
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