Question 5 A country with relatively high interest rates will attract foreign investment which will: increase...
Question 5
A country with relatively high interest rates will attract foreign investment which will:
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increase the value of the currency in that country. |
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decrease the value of the currency in that country. |
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not affect the value of the currency in that country. |
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increase the value of all foreign currencies. |
Homework Answers
A country with relatively high-interest rates will attract foreign investment which will:
a) increase the value of the currency in that country
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Question 5 A country with relatively high interest rates will attract foreign investment which will: increase...
India tends to have much higher inflation than Australia and also much higher interest rates than...
India tends to have much higher inflation than Australia and also much higher interest rates than Australia. Inflation and interest rates are much more volatile in India than in industrialised countries. The value of the Indian rupee is typically more volatile than the currencies of industrialised countries from an Australian perspective; it has typically depreciated from one year to the next, but the degree of depreciation has varied substantially. The bid/ask spread tends to be wider for the rupee than...
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational cor...
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency with...
Question 9 (5 points) Which of the following would increase the U.S. demand for foreign currency?...
Question 9 (5 points) Which of the following would increase the U.S. demand for foreign currency? an increase in the U.S. demand for foreign goods an increase in incomes abroad a decrease in U.S. incomes a decrease in the U.S. demand for foreign goods an increase in U.S. real interest rates
Which factors increase international portfolio investments into a country? Check all that apply: Expected appreciation of...
Which factors increase international portfolio investments into a country? Check all that apply: Expected appreciation of the foreign currency High potential economic growth High interest rates High tax rates on dividends and interest
When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country...
When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively _______. overvalued; high overvalued; low undervalued; high undervalued; low
5. Interest rate parity Aa Aa E The rise of globalization is due to the many...
5. Interest rate parity Aa Aa E The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency...
Which of the following events would lead to an increase in direct foreign investment? Check all...
Which of the following events would lead to an increase in direct foreign investment? Check all that apply: The economy is bound to grow quickly. The country raises its corporate tax rates. The local currency is expected to depreciate over the next few years. The country decides to privatize some state-owned enterprises. The government removes restrictions against DFI.
Question 22 What has helped the UAE to attract foreign capital investment in to the country?...
Question 22 What has helped the UAE to attract foreign capital investment in to the country? a) Investment opportunities in the country b) The expansion of Free Trade Zones in UAE c) Developed infrastructure and legal procedures that makes doing business easy d) All of the above are good reasons Question 23 The GCC (Gulf Cooperation Council) to which the UAE is a member is an example of: a) an Economic and Monetary Union b) a Common Market c) a...
QUESTION 5 Select all of the following that are true regarding interest rates and foreign exchange...
QUESTION 5 Select all of the following that are true regarding interest rates and foreign exchange rates, ceteris p aribus Interest rate parity between countries is a reasonable assumption due to arbitrage and floating exchange rates When a domestic currency depreciates, domestic interest rates rise When domestic interest rates rise the domestic currency depreciates When domestic interest rates rise due to monetary policy, the domestic currency appreciates solely because of the decreased supply of the domestic currency
5. Interest rate parity Aa Aa The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency with...
Question 9 (5 points) Which of the following would increase the U.S. demand for foreign currency? an increase in the U.S. demand for foreign goods an increase in incomes abroad a decrease in U.S. incomes a decrease in the U.S. demand for foreign goods an increase in U.S. real interest rates
5. Interest rate parity Aa Aa E The rise of globalization is due to the many companies that have become multinational corporations for various reasons-for example, to access better technology, to enter new markets, to obtain more raw materials, to find funding resources, to minimize production costs, or to diversify business risk. This multimarket presence exposes companies to different kinds of risk as well-for example, political risk and exchange rate risk. Several factors affect the exchange rate of a currency...
QUESTION 5 Select all of the following that are true regarding interest rates and foreign exchange rates, ceteris p aribus Interest rate parity between countries is a reasonable assumption due to arbitrage and floating exchange rates When a domestic currency depreciates, domestic interest rates rise When domestic interest rates rise the domestic currency depreciates When domestic interest rates rise due to monetary policy, the domestic currency appreciates solely because of the decreased supply of the domestic currency
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