Describe the differences and links between the European money market and traditional international financial markets.

Test the differences and connections between the European money market and traditional international financial markets.

View Answer Explanation Correct Answer Connection: from the point of view of engaging in international financial business, both types of international financial markets belong to the category of international financial markets.

Difference: (1) the two are first from the historical development of the different international financial markets overall classification;

(2) the basis of different, the former is the product of institutional arrangements, the latter is the natural extension of the international financial market;

(3) different objects of the transaction, the former object of the transaction is the currency of the outside world, the latter object of the transaction is the currency of the country where the market is located;

The two types of international financial markets are the same.

(4) the degree of foreign exchange control is different, the former is almost not subject to the national laws and regulations of the country of currency issuance, and not subject to the national regulations of the country where the transaction takes place;

(5) the European currency market is a fully internationalized market, is the most important systemic innovation, which changes the nature of the traditional market, and become the real sense of the international financial market.

Answer Analysis This question examines the traditional international financial markets and the European money market. See textbook P161.