This is not a writing assignment, this is a multiple-choice question Which of the below is NOT a factor determining the demand for a currency such as the U.S. dollar? Group of answer choices All else equal, foreign capital is attracted by emerging economies with unstable political history and greater volatility in their financial and stocks markets. All else equal, higher real interest rates offered in the U.S. will make it lucrative for foreign investors to purchase U.S. bonds that pay a higher interest rate. Foreigners will need to purchase U.S. dollars to purchase U.S. treasuries. A country with a booming economy will often have a currency that is appreciating. Strong growth presents economic investment opportunities and attracts financial capital from other countries. If the country in question is the U.S. then the inflow of foreign financial capital must be converted to U.S. dollars to be invested in the U.S.
This is not a writing assignment, this is a multiple-choice question
Which of the below is NOT a factor determining the demand for a currency such as the U.S. dollar?
Group of answer choices
All else equal, foreign capital is attracted by emerging economies with unstable political history and greater volatility in their financial and stocks markets.
All else equal, higher real interest rates offered in the U.S. will make it lucrative for foreign investors to purchase U.S. bonds that pay a higher interest rate. Foreigners will need to purchase U.S. dollars to purchase U.S. treasuries.
A country with a booming economy will often have a currency that is appreciating. Strong growth presents economic investment opportunities and attracts financial capital from other countries. If the country in question is the U.S. then the inflow of foreign financial capital must be converted to U.S. dollars to be invested in the U.S.
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