If a large amount of investors sell their securities in the United States and opt to...
If a large amount of investors sell their securities in the United States and opt to invest in, let's say, Canada, what will be the impact on exchange rates? Which country's currency will become more valuable?
Homework Answers
Answer-
if the investors of US sell their securities and purchase new securities in Canada then the exchange rate will differ. Canadian dollar will strengthen and the reason is quite simple as there are more money with the Canadian companies.
The value of Canadian dollar will go up with respect to American dollar.
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