If for a Particular County an Increase in the Interest

question 88

Multiple Choice

If for a particular county an increase in the interest rate is more or less matched by an expected depreciation in the local currency,

• A)traders will probably be tempted to find another country to invest in.
• B)the interest rate increase per se will not be enough to spark capital flow into the country.
• C)both a and b are true
• D)capital will glow out of the country as the disgruntled citizens riot and go to war with the neighbors.

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Definitions:

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the resulting harm.

Directors

Individuals elected by shareholders to oversee the management of a corporation and make major decisions.

Board Meetings

Formal gatherings of the board of directors of an organization or company to discuss and decide on corporate matters.

Litigation

The process of taking legal action in court to enforce or defend rights.