An MNC has determined that the degree of appreciation for the Singapore dollar that equates the foreign and domestic yield is 2%. If the Singapore dollar appreciates by less than 2%, the investment in Singapore will be more attractive.

Question

Quizplus · Accepted Answer

If the Singapore dollar appreciates by less than 2%, it means the domestic yield is relatively higher than the foreign yield, which would make the investment in Singapore less attractive. Therefore, the statement is false.

An MNC Has Determined That the Degree of Appreciation for the Singapore