Which of the Following Is Not True Regarding Foreign Interest

question 61

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 U.S.
• 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.

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