Current account, Capital account and Euro Credit Market
January 26th, 2023
Please, answer the questions below.
1. What is the current account generally composed of?
2. What is the capital account generally composed of?
3. Is a current account deficit something to worry about?
4. If a government wants to correct a current account deficit, why can’t it simply enforce restrictions on imports?
5. With regard to Eurocredit loans, who are the borrowers?
6. Why would a bank desire to participate in syndicated Eurocredit loans?
7. What is LIBOR and how is it used in the Eurocredit market?