A country with relatively high interest rates will attract foreign investment which will:
A)increase the value of the currency in that country.
B)decrease the value of the currency in that country.
C)not affect the value of the currency in that country.
D)increase the value of all foreign currencies.

Question

Quizplus · Accepted Answer

When a country has high interest rates, it makes it more attractive to foreign investors as they can earn higher returns on their investments. As a result, there will be an increase in demand for that country's currency, causing its value to rise.

A Country with Relatively High Interest Rates Will Attract Foreign