When deciding between U.S.and British government securities, an American investor typically considers
A) U.S. and British interest rates and anticipated changes in the exchange rate.
B) budget deficits of the U.S. government and British government.
C) shifts in the demand for U.S. goods and British goods.
D) U.S. and British inflation rates and anticipated changes in the exchange rate.

Question

Quizplus · Accepted Answer

An American investor would consider interest rates and exchange rate changes, as these affect returns on foreign investments.

When Deciding Between U