If investors think the value of financial assets in a country will fall, they will
A) sell those assets and buy assets in another currency.
B) sell those assets and buy currency.
C) buy those assets and sell currency.
D) buy those assets and sell other countries' currencies.
E) do none of these; investors are not influenced by changes in the value of financial assets.

Question

Quizplus · Accepted Answer

When investors anticipate a decline in the value of financial assets in a country, they often sell those assets to avoid losses. They might then seek to invest in assets denominated in a different currency where they expect better returns or more stability, hence option A is correct.

If Investors Think the Value of Financial Assets in a Country