International financial markets serve as a global marketplace where individuals, businesses, and governments can borrow and lend money in different currencies.

Stock markets are domestic markets where stocks of companies are traded. While they can have international participants, they are not considered international financial markets in the same way as the foreign exchange, bond, and commodity markets.

The US Dollar is the most traded currency in the foreign exchange market, accounting for over 80% of daily transactions.

Central banks play a crucial role in international financial markets by setting interest rates, regulating financial institutions, and managing the country's foreign exchange reserves.

Forward contracts in the foreign exchange market serve two main purposes: to lock in an exchange rate for a future transaction and to hedge against currency risk.

Municipal bonds are issued by local governments within a country and are not considered international bonds.

The primary purpose of the IMF is to promote international monetary cooperation, facilitate international trade, promote exchange rate stability, and provide financial assistance to countries in need.

Spot transactions involve immediate delivery of currency, while forward transactions involve future delivery. Spot transactions are typically for smaller amounts, while forward transactions are for larger amounts.

A credit default swap (CDS) is a financial instrument that provides protection against the risk of default on a loan.

The main function of the BIS is to promote cooperation among central banks and to provide a forum for discussion and collaboration on monetary and financial issues.

A currency swap involves exchanging one currency for another at a predetermined rate, typically for a specified period of time. It can be used to hedge against currency risk or to speculate on future currency movements.

An option gives the buyer the right, but not the obligation, to buy or sell a currency at a predetermined rate, while a forward contract obligates the buyer to buy or sell a currency at a predetermined rate. Options are typically more expensive than forward contracts.

A global depository receipt (GDR) is a financial instrument that allows foreign investors to trade shares of a company in their own country, without having to purchase the shares directly on the company's home exchange.

The main function of the World Bank is to provide financial assistance to developing countries, promote economic development, and reduce poverty.