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The Role of Capital in the U.S. Economy

By Kimberly Amadeo, About.com

The Role of Capital in the U.S. Economy Remains Strong: The U.S. has the world’s most sophisticated stock market and financial sector. The transparency of our stock market allows investors to gain up-to-date information about every aspect of companies in which they might invest.
Wall Street attracts the most talented personnel and can afford the most powerful technology. This allows U.S. banks to control billions of dollars in transactions to take place anywhere in the world. It also enables these banks to provide any number of complicated derivatives to provide hedging against risk. This incredible comparative advantage supports a variety of complicated foreign exchange transactions at lower cost.

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