Purchase Solution

International finance - interest rates and future strength or weakness of the US dollar.

Not what you're looking for?

Ask Custom Question

Assume that foreign interest rates are expected to rise above US interest rates. What does this suggest about the future strength or weakness of the US dollar?

Purchase this Solution

Solution Summary

The solution explains the interrelationship between strength of the US dollar, demand for currency and the effect to interest rates and the economy.

Solution Preview

If the foreign interest rates are expected to rise, people in the foreign country then intend to save more money in their bank account. The demand for foreign currency will increase and relatively, the demand for USD will decrease. Obviously, excess supply of USD will bring down its exchange rate.

In the foreign ...

Purchase this Solution


Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media