A corporate investment manager needs to invest $1,000,000 for the next 6 months. The current
nominal rate of interest in the United States is 5%, while the nominal rate of interest in Argentina is
8%.
Which of the following statements is MOST correct?
A) The manager should invest the funds in Argentina and make an extra $30,000 for the year.
B) The manager is indifferent between investing the funds in the United States or Argentina
because real returns will always be the same in the end.
C) The manager cannot invest in Argentina because his company is investing dollars.
D) The manager may decide to invest the funds in the United States due to the international
Fisher effect, which suggests inflation in Argentina may make the extra interest income worth
less in one year.
D
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A) the traveling salesman must return to the starting point. B) the shortest route is concerned with minimizing the total distance traveled. C) the traveling salesman must complete the tour in one day or less. D) the shortest route requires a GPS system.
Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply chain
Indicate whether the statement is true or false