What Is the "Cost of Carry" Equivalent for Exchange Rates

question 18

Multiple Choice

What is the "cost of carry" equivalent for exchange rates?

• A)The forward rate
• B)The interest rate in the host country
• C)The interest rate in the foreign country
• D)The interest rate difference between the host and foreign countries

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Definitions:

Months

Periods of time in the Gregorian calendar, each consisting of 28 to 31 days.

Size Constancy

A perceptual phenomenon where the perceived size of an object remains constant despite changes in its distance from the observer.

Bottom-Up Processing

An approach to information processing that starts with small, detailed data points to build up a comprehensive picture.

Retinal Image

A proximal stimulus for vision consisting of the projection of light waves reflected from stimuli and projected to a surface at the back of the eye.