Foreıgn Trade Deneme Sınavı Sorusu #1376817

Which of the following refers to flows that generally do not come to a country to benefit the high return possibilities in financial assets and to obtain extra profit by using interest rate-foreign exchange rate arbitrage?


Short term capital flows

Long term capital flows

Government capital flows

Direct investments

Portfolio investments


Yanıt Açıklaması:

Short term capital flows generally do not come to a country to utilize its economic development potential; they generally move into a country to benefit the high return possibilities in financial assets and to obtain extra profit by using interest rate-foreign exchange rate arbitrage. Therefore, it is possible to say that this type of capital flows is largely speculative. The correct answer is A.

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