Longer-Term Capital Flows Reflect Short-Term Interest Rate Differentials and Exchange

question 38

True/False

Longer-term capital flows reflect short-term interest rate differentials and exchange rate expectations.

---

Definitions:

Contributions

Amounts given or payments made towards a common goal, project, or for the benefit of a group.

Compounded Semi-annually

A method where interest is calculated and added to the principal amount twice a year.

Quarterly

Happening quarterly or four times annually.

Trust Fund

A legal arrangement through which assets are held by a third party for the benefit of another party or parties.