Kenneth R. Szulczyk
- Explain an offshore market.
- Identify the methods a U.S. bank becomes an international bank.
- Identify methods a foreign bank enters the United States banking industry.
- Identify an exchange rate risk.
- You loaned a Mexican business $100,000. However, the business is repaying the loan in
Mexican pesos. Exchange rate was $1 = 10 pesos on the day of the loan but had changed to
$1 = 15 pesos; what happened to the value of your investment? - Distinguish between a spot market and a derivatives market.
- Identify a forward transaction.
- Define a currency swap with a ‘spot against a forward.’
- Identify the purpose of a currency swap.
- Explain how a banker’s acceptance facilitates trade.
- Define Eurodollars, Euroloans, and Eurobonds, explain why these financial instruments are
popular. - Identify the problems that governments experience as they regulate international banks.