If Investors Think the Value of Financial Assets in a Country

question 86

Multiple Choice

If investors think the value of financial assets in a country will fall, they will

• A) sell those assets and buy assets in another currency.
• B) sell those assets and buy currency.
• C) buy those assets and sell currency.
• D) buy those assets and sell other countries' currencies.
• E) do none of these; investors are not influenced by changes in the value of financial assets.

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Definitions:

Magical Thinking

The belief that one's thoughts, words, or actions can influence or bring about events in the physical world in a way that defies the known laws of nature.

Thought Insertion

A psychological phenomenon in which an individual believes thoughts that are not their own have been inserted into their mind.

Strong Final Remarks

The concluding statements in a communication or document that leave a powerful impression on the recipient.