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

question 106

Multiple Choice

If foreign interest rates are high relative to those in the U.S. demand for dollars will:

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

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Definitions:

Precisely Determined

Accurately established or calculated with precision, leaving no ambiguity about the result or outcome.

Servo Motors

Motors equipped with feedback systems to control the position, velocity, or torque of the motor with high precision.

Open Loop

A system that has no feedback or auto correction.

Inductive Proximity Sensor

a sensor used to detect the presence of metallic objects without physical contact by generating a magnetic field.