ABSTRACT
THE INTERNATIONAL money and capital markets include the Eurocurrency and international bond markets. The markets are parallel to and interdependent with the traditional international domestic money and capital markets, and they are closely linked to the corresponding national markets. These markets differ from both the traditional international and domestic capital markets in regulation, institutional structure, interestrate determination, flow of funds, and lending and borrowing practices. The Eurocurrency market is closely interdependent with the foreign-exchange market, but the two markets are distinct in function.
