From mid-2008 through early 2009 the dollar staged a moderate rally against major currencies,despite the fact that the American economy was suffering from a serious financial crisis.Which of the following was seen to be a reason behind this rally?
A) High real interest rates in the United States compared to any other developed region in the world sparked an inflow of funds into the country.
B) U.S.assets were characterized by a high-risk,high-return payoff which prompted foreign investors to park their funds.
C) Foreign investors were excited at the possibility of high returns following the government bail-out of financial institutions.
D) Foreign investors saw the dollar has a safe haven and put their money in low-risk U.S.assets.
Correct Answer:
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