Which of the Following Is Not True Regarding Foreign Interest

question 66

Multiple Choice

Which of the following is not true regarding foreign interest rates?

• A) The large flow of funds between countries causes interest rates in any given country to become more susceptible to interest rate movements in other countries.
• B) The expectations of a strong dollar should cause a flow of funds to the United States.
• C) An increase in a foreign country's interest rates will encourage investors in that country to invest their funds in other countries.
• D) All of the above are true regarding foreign interest rates.

---

Definitions:

Subsidiaries

Subsidiaries are companies that are controlled by another company, known as the parent company, through majority ownership of shares.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Held-to-Maturity Debt Securities

Debt investments that a company has the positive intent and ability to hold until their maturity dates, typically reported at amortized cost.

Fair Value Method

An accounting approach where assets and liabilities are reported at their prices that would be received to sell an asset or paid to transfer a liability.