If Foreign Interest Rates Are High Relative to Those in the U.S

question 32

Multiple Choice

If foreign interest rates are high relative to those in the U.S.:

• A)demand for dollars will decrease as investors sell their dollars to buy foreign currency for investment.
• B)demand for dollars will increase as investors sell their currency to buy dollars for investment.
• C)demand for dollars will decrease as investors sell their currency to buy dollars for investment.
• D)demand for dollars will increase as investors sell their dollars to buy foreign currency for investment.

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Definitions:

Pension Fund Investors

Individuals or entities that manage investments made with the contributions to pension funds, aiming for growth to secure benefits for future retirees.

Labor Movement

A social and economic movement promoting workers' rights and interests, often through the formation of labor unions.

Shareholder Proposals

Suggestions or demands made by shareholders that are presented for a vote at a company’s annual meeting, often related to corporate governance or social responsibility issues.

Maximizing Shareholder Value

A company's goal to increase the wealth of its shareholders by improving profitability and potential dividends.