Which of the following best explains the fact that interest rates on the euro are lower than those on the pound? Inflationary expectations are higher in the UK than in the eurozone.

Question

Quizplus · Accepted Answer

British markets are offshore from mainland Europe, which means that they are not subject to the same regulations as the eurozone. This makes them more attractive to investors, who are willing to accept lower interest rates in exchange for the increased flexibility and freedom that comes with investing in an offshore market.

Which of the Following Best Explains the Fact That Interest