oussama94
05-29-2017, 00:08
The basic premise of this theory is that the flow of funds into other financial
assets of a country such as equities and bonds increases the demand for
that country’s currency (and vice versa). As proof, advocates point out that
the amount of funds that are placed in investment products such as stocks
and bonds now dwarf the amount of funds that are exchanged as a result of
the transactions in goods and services for import and export purposes. The
asset market theory is basically the opposite of the balance of paymentstheory since it takes into account a nation’s ******* account instead of its
current account
assets of a country such as equities and bonds increases the demand for
that country’s currency (and vice versa). As proof, advocates point out that
the amount of funds that are placed in investment products such as stocks
and bonds now dwarf the amount of funds that are exchanged as a result of
the transactions in goods and services for import and export purposes. The
asset market theory is basically the opposite of the balance of paymentstheory since it takes into account a nation’s ******* account instead of its
current account