Capital Flow and Interest Rates

Assets can include which of the following:

• Stocks

• Bonds

• Computers

• Anything that can be affected by interest rates

True or False: Purchasing domestic assets by foreign investors is a part of capital flow between countries

• True

• False

What must happen to encourage inbound capital flow?

• Domestic countries interest rates have increased

• Domestic countries interest rates have decreased

• Domestic countries interest rates have remained constant

Inbound capital flow will increase all of the following EXCEPT

• Loanable Funds Supply

• Current Account

• Money Supply

• Capital Account

• Investment Spending

Outbound capital flow adds money to the domestic economy

• True

• False

Outbound capital flow decreases all of the following EXCEPTS

• Capital Account

• Loanable Funds Supply

• Current Account

• Money Supply

• Investment Spending

What are THREE takeaways from the videos (Be specific and detailed)