Question 1.4: Currencies and Symbols. What technological change is even changing the symbols we use in the representation of different country currencies?
The process commonly known as Globalization also has an input in the digital world. The technological change globalization is causing our currency symbol system is no other than an international standardization of currencies to establish internationally recognized codes for their representation. This standard is give by the ISO (International Organization of Standardization) in its standard: ISO 4217.
Currencies can be represented in the code in two ways: a three-letter alphabetic code and a three-digit numeric code. The former is based on another ISO standard, ISO 3166, which lists the codes for country names. The first two letters of the ISO 4217 three-letter code are the same as the code for the country name, and where possible the third letter corresponds to the first letter of the currency name. If the dollar were to be represented by this standard, it would be USD - the US coming from the ISO 3166 country code and the D for dollar. The latter code is useful when currency codes need to be understood in countries that do not use Latin scripts and for computerized systems. Where possible the 3 digit numeric code is the same as the numeric country code.
Question 1.5: Eurocurrencies and LIBOR. Why have Eurocurrencies and LIBOR remained the centerpiece of the global financial marketplace for so long?
One of the major linkages of global money and capital markets is the Eurocurrency market and its interest rate, LIBOR. Eurocurrencies are domestic currencies of one country on deposit in a second country for a period ranging from overnight to more than a year or longer. The reference rate of interest in the Eurocurrency market is the London Interbank Offered Rate, or LIBOR which is the most widely accepted rate of interest used in standardized quotations, loan agreements, or financial...