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You are an international investment manager based in Canada and you believe in IFE. You find that UK interest rates are 2% above Canadian interest

You are an international investment manager based in Canada and you believe in IFE. You find that UK interest rates are 2% above Canadian interest rates. WIll you deposit your money in UK to receive a higher yield? Political situation in UK is too uncertain to consider the opportunity No because Canada deposits and UK deposits would yield the same Yes, because 2% differential is quite substantial when dealing with huge funds.

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