International Capital Market

A capital market is a market in which individuals and institutions trade long term financial securities.

• TRUE

• FALSE

International capital market is liquid because it has smaller pool of funds and smaller number of participants with the majority being international portfolio investors.

• TRUE

• FALSE

International capital market provides many firms access to new sources of fund beyond those available in their home market.

• TRUE

• FALSE

International capital market is important because it helps to increase the cost of money for borrowers.

• TRUE

• FALSE

In international capital market, investors enjoy a greater set of investment opportunities from which to choose.

• TRUE

• FALSE

The followings are the importance of international capital market EXCEPT:

• Expands money supply for borrower

• Reduces cost of money for borrowers

• Limits money supply for borrowers

• Reduces risk for investors