Many organisations are using various financial instruments to raise money in international capital market. Explain any two instruments used for this purpose?
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Answer:
Various financial instruments used in international facing include (i) Commercial Banks Commercial banks extend foreign currency loans for business purposes. ... The more notable among them include International Finance Corporation (IFC), EXIM Bank and Asian Development Bank.
Many organisations are using various financial instruments to raise money in international capital market and two of them are given below:
1. Commercial Banks : These banks extend foreign currency loans for business purposes all over the world. Commercial banks are among the main sources of financing non-trade international operations. Only thing is, the type of loans and services vary from country to country.
2. International Agencies and Development Banks : Recently, a number of international agencies and development banks have emerged to finance international business. These agencies can provide medium and long term loans. They were set up by the Governments of developed countries of the world at regional, national, and international levels to provide fund for different projects.