If the World Real Interest Rate Exceeds the Canadian Real

question 63

Multiple Choice

If the world real interest rate exceeds the Canadian real interest rate, what would Canadian savers most likely do?

• A) Canadian savers would prefer to buy foreign assets.
• B) Canadian savers would prefer to buy Canadian assets.
• C) Canadian savers will prefer to wait until the two real interest rates are again equal.
• D) Canadian savers will sell their foreign assets and buy Canadian assets instead.

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Definitions:

Central Agency

A principal government department or organization responsible for implementing specific policies or administering activities in a centralized manner.

Management Function

Activities such as planning, organizing, leading, and controlling that are performed to achieve organizational goals.

Strategic View

An approach that focuses on long-term goals and objectives, often involving planning and foresight to achieve desired outcomes.

Broad Perspective

An approach or viewpoint that is wide-ranging and encompasses various angles and aspects.