If a nation maintains fixed exchange rates, it may be a haven for foreign investment if:
A) investors (irrationally fearing the peg will not hold) demand higher interest rates (risk premium) on investments denominated in the currency.
B) investors make more money when they go against conventional wisdom and put money in riskier investments.
C) there is more certainty over the real return on investments.
D) its government taxes returns from those investments.

Question

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The Answer of If a nation maintains fixed exchange rates, it may be a haven for foreign investment if:
A) investors (irrationally fearing the peg will not hold) demand higher interest rates (risk premium) on investments denominated in the currency.
B) investors make more money when they go against conventional wisdom and put money in riskier investments.
C) there is more certainty over the real return on investments.
D) its government taxes returns from those investments.

If a Nation Maintains Fixed Exchange Rates, It May Be