COVERED Interest Arbitrage (CIA), Is Where Investors Borrow in Countries

question 17

True/False

COVERED interest arbitrage (CIA), is where investors borrow in countries and currencies exhibiting relatively low interest rates and convert the proceeds into currencies that offer much higher interest rates. The transaction is "covered," because the investor does not sell the higher yielding currency proceeds forward.

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Definitions:

Embryonic Germ Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in the embryo from which all tissues and organs develop.

Acrosome

A vesicle at the tip of a sperm cell containing enzymes that help the sperm penetrate the egg.

Umbilical Cord

A flexible cordlike structure containing blood vessels and attaching a human or other mammalian fetus to the placenta during gestation.

DNA

Deoxyribonucleic acid, a self-replicating material which is present in nearly all living organisms as the carrier of genetic information.