If investors are becoming concerned that investments in Argentina are at increased risk of default,these investors would be inclined to ________ Argentine pesos,________ the value of the Argentine peso relative to other currencies.

Question

Quizplus · Accepted Answer

If investors are concerned about default risk, they are likely to sell their investments in Argentina and convert their Argentine pesos into other currencies, which would increase the supply of pesos in the market and lower its value relative to other currencies. Therefore, the correct choice is to sell Argentine pesos, which is only included in option D.

If Investors Are Becoming Concerned That Investments in Argentina Are