If the Risk of Buying U

question 144

Multiple Choice

If the risk of buying U.S.assets rises because it is discovered that lending institutions had not carefully evaluated borrowers prior to lending them funds,then

• A)net capital outflow and the real exchange rate will rise.
• B)net capital outflow will rise and the real exchange rate will fall.
• C)net capital outflow will fall and the real exchange rate will rise.
• D)net capital outflow and the exchange rate will fall.

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Definitions:

Identical Twins

Twins that originate from a single fertilized egg, sharing the same genetic material and typically very similar in appearance.

Personalities

The combination of characteristics or qualities that form an individual's distinctive character, influencing their patterns of thought, feelings, and behavior.

Situational Influences

External factors or circumstances that affect an individual's behavior, decisions, or feelings.

Locus of Control

A psychological concept referring to individuals’ beliefs about the extent to which the outcomes of their actions are under their own control or are influenced by external factors.