Investors based in the U.S. can earn 11% interest on a one-year bank deposit in Argentina (with no default risk) or 2% on a one-year U.S. bank deposit in the U.S. (with no default risk). Assess the following statement: “According to the international (IFE), if U.S. investors invest 1000 Argentine pesos in an Argentine bank deposit, they are expected to receive only 20 pesos (2% x 1,000 pesos) as interest. ” Is this statement a correct explanation of why the international would discourage U.S. investors from investing in Argentina? If not, provide a more accurate explanation for why investors who believe in IFE would not pursue the Argentine investment in this example.
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com