Covered Interest Arbitrage Moves the Market ________ Equilibrium Because ________

question 55

Multiple Choice

Covered interest arbitrage moves the market ________ equilibrium because ________.

• A) toward; purchasing a currency on the spot market and selling in the forward market narrows the differential between the two
• B) toward; investors are now more willing to invest in risky securities
• C) away from; purchasing a currency on the spot market and selling in the forward market increases the differential between the two
• D) away from; demand for the stronger currency forces up interest rates on the weaker security

---

Definitions:

Aged 65

Refers to individuals who are 65 years old or older, often considered a benchmark age for 'elderly' or 'senior' status in many societal contexts.

Preferred Provider Organization

A type of health insurance plan that offers a network of healthcare providers to its members at discounted rates.

Services at a Discount

Offering services or goods at a price lower than the usual or marked price, often to attract customers or provide accessibility.

Health Maintenance

The practice of adopting lifestyle behaviors and healthcare strategies aimed at preventing diseases and preserving health.