a) What do you understand by the term credit derivatives and asset-backed securities?
b) Supposing perfect capital mobility under Mundell-Fleming Model, using the IS-LM framework clearly describe the effectiveness of:
i) An expansionary fiscal policy under a fixed exchange rate regime.
ii) An expansionary monetary policy under a floating exchange rate regime.
a) Make a distinction between Speculation, Arbitrage and Hedging.
b) In brief describe the differentiations between forwards and futures.
a) Comment on the effects of Globalisation, Technologial, Liberalisation advances and financial innovation on international Finance.
b) Clearly describe the differentiations between transaction and translation risks.