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7 March, 05:28

A country's overall level of interest rates should have an impact on the financial account of the BOP. Relatively low real interest rates should normally stimulate an outflow of capital seeking higher interest rates in other country currencies.

a. True

b. False

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Answers (1)
  1. 7 March, 06:54
    0
    a. True

    Explanation:

    Yes! the given statement is very true, because as we know that all the level of a nation's rate of interest has an influence on the BOP (generally known as Balance Of Payments) financial account, and also relatively low real interest rates are generally encouraged.

    An outflow of funds are been pursued at a higher interest rates in an another nation's currency as well.
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