Answer Happy

Interest rate movements have a direct influence on the
market values of debt securities, such as money market securities,
bonds, and mortgages. Interest rate movements also affect the value
of most financial institutions. They affect the cost of funds to
depository institutions and the interest received on some loans by
financial institutions.
Assume that Singapore has a very strong economy, putting
upward pressure on both its inflation and interest rates. Explain
how these conditions could put pressure on the value of Singapore
dollar and determine whether the dollar’s value will rise or
fall