International Money Markets - When do MNCs have an incentive to invest short-term funds in a foreign currency? If the investments denominated in the foreign currency have a lower interest rate than investments denominated in the home currency If the investments denominated in the foreign currency have a higher interest rate than investments denominated in the home currency If the investments denominated in the foreign currency have a higher volatility of returns than the investments denominated in the home currency If the foreign country has the same political stability as the home country If the expected change in the foreign exchange rate is negligible