If the interest rate in two countries were the same, you would prefer to invest in assets of the country:

Question

Quizplus · Accepted Answer

When investing in assets of a country, if the interest rate is the same in both countries, the decision would depend on the expected movement of the currency. A currency that is likely to appreciate in value would result in higher returns on the investment. Hence, the best choice would be to invest in the country whose currency is likely to appreciate.

If the Interest Rate in Two Countries Were the Same