The U.S. interest rate minus the foreign interest rate is called the __________.
A) U.S. interest rate differential
B) foreign interest rate differential
C) U.S. bond rate differential
D) U.S. stock yield differential

Question

Quizplus · Accepted Answer

The difference between the U.S. and foreign interest rates is called the U.S. interest rate differential. This is because it reflects the difference in the rate of return on investments between the U.S. and foreign countries. The other choices are not accurate descriptions of this concept.

The US Interest Rate Minus the Foreign Interest Rate Is Called