Which of the following is not true regarding foreign interest rates?
A) The large flow of funds between countries causes interest rates in any given country to become more susceptible to interest rate movements in other countries.
B) The expectations of a strong dollar should cause a flow of funds to the United States.
C) An increase in a foreign country's interest rates will encourage investors in that country to invest their funds in other countries.
D) All of the above are true regarding foreign interest rates.

Question

Quizplus · Accepted Answer

An increase in a foreign country's interest rates will typically encourage investors to keep their funds in that country to take advantage of the higher returns, rather than investing elsewhere.

Which of the Following Is Not True Regarding Foreign Interest