According to the IFE, if British interest rates exceed U.S. interest rates:

Question

​According to the IFE, if British interest rates exceed U.S. interest rates:

Quizplus · Accepted Answer

According to the IFE, if British interest rates exceed U.S. interest rates, the British pound's value will decrease against the dollar, i.e. it will depreciate. This is because investors will seek higher returns in the UK, causing an increase in demand for the pound which will lead to its appreciation. However, the resulting increase in the supply of pounds in the foreign exchange market that will occur when investors convert their profits back into U.S. dollars will cause the pound's depreciation.

​According to the IFE, If British Interest Rates Exceed U

According to the IFE, If British Interest Rates Exceed U