Assume Identical Interest Rates on Comparable Securities in the United

question 74

Multiple Choice

Assume identical interest rates on comparable securities in the United States and foreign countries.Suppose investors anticipate that in the future the U.S.dollar will depreciate against foreign currencies.Investment funds would tend to:

• A) Flow from the United States to foreign countries
• B) Flow from foreign countries to the United States
• C) Remain totally in foreign countries
• D) Remain totally in the United States

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Definitions:

Operant Conditioning

A learning process whereby the strength of a behavior is modified by reinforcement or punishment.

Variable-Ratio Reinforcement

A reinforcement strategy in which a response is rewarded after an unpredictable number of responses, promoting a high and steady rate of response.

Internal Locus

The belief that one has control over their life and the outcomes of their actions, as opposed to external forces.

Control

In experimental research, the standard by which experimental observations are compared, or the ability to direct influence or regulate a situation or mechanism.