9
lesson pretestMultiple Choice

Pretest

Question 9 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

If investors can earn 10 percent interest in an account in Mexico but just 3 percent in the United States, those investors will most likely

Answer
A
want to invest in Mexico, which will cause the peso to appreciate.
B
want to invest in Mexico and cause the exchange rate to rise.
C
continue to invest in the United States and have no effect on the exchange rate.
D
try to do anything possible to keep the exchange rate from changing.

Explanation

Investors are likely to move money to Mexico because a 10% return is higher than the 3% available in the United States. To invest there, they need pesos, so demand for pesos increases. That increased demand causes the peso to appreciate, making A correct.

AI-written and checked against the verified answer.

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