International Finance: Flow of Funds and Foreign Currency Borrowing
VerifiedAI Summary
Explore the concept of flow of funds in international finance and the benefits of foreign currency borrowing. Learn about the role of commercial banks in facilitating flow of funds and the various markets involved. Understand the factors to consider when deciding on the currency to borrow in. Discover the impact of inflation and other factors on the demand and supply of a currency. Gain insights into the risks and benefits of covered interest arbitrage in managing exchange rate fluctuations.