Question

Define the following terms;

current account   

capital and financial account   

overall balance

order-driven market   

Price-Driven market

Derivatives

Exchange Rate Regime

Answer 1

As per rules I am answering the first 4 subparts of the question:

1:Current account: It represents the sum of the balance of trade , net income from abroad, and net current transfers. Balance of trade is (goods and services exports minus imports).

2: The capital account refers to  international capital transfers. It includes debt forgiveness, transfer of ownership on fixed assets, ransfer of funds related to purchase of fixed assets, inheritance taxes and intangible assets such as patents and copyrights.

3:Financial account is comprised of the domestic ownership of foreign assets and the foreign ownership of domestic assets.It deals with foreign reserves, and foreign reserves and private investments.

4: Overall balance represents the overall measure of an economy's private, financial and economic transactions with other economies of the world..