It's probably a stupid question, but doesn't an American dollar have more value in other parts of the world? For example . 10 American dollars here buys you ____. ., but that 10 American dollars in a foreign country buys you much more.(has more value) in a poorer country. If thats correct than cant someone invest say 10,000 U.S. dollars into a foreign bank, let it sit there awhile and compound at whatever rate the foreign bank is at. When that money is withdrawn or transferred back into the U.S. and exchanged at the higher exchange rate. It is alot more than what would be made if it was left in an American bank for the same amount of time? Considering that the interest rates were similar? Not sure if I make any sense or am asking the question improperly.
2007-01-05
08:29:21
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8 answers
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asked by
Carlitos
1