Assume that foreign investors who have invested in Malaysian securities decide to increase their holdings of Malaysian securities and to instead decrease their holdings of securities in their own countries. How will this affect Malaysian interest rates? Explain

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter21: International Cash Management
Section: Chapter Questions
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Assume that foreign investors who have invested in Malaysian securities decide to increase their holdings of Malaysian securities and to instead decrease their holdings of securities in their own countries. How will this affect Malaysian interest rates? Explain.

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