The Act of Capitalizing on the Discrepancy Between the Forward

question 37

Multiple Choice

The act of capitalizing on the discrepancy between the forward rate premium and the interest rate differential is called ​

• A)triangular arbitrage.
• B)locational arbitrage.
• C)covered interest arbitrage.
• D)interest rate parity.

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Definitions:

Affective Choice

A psychological concept where individuals make decisions based on emotions, feelings, or moods rather than purely on objective criteria.

Evaluative Criteria

Standards or benchmarks that consumers use to judge the merits of competing options.

Attitude Choice

The process by which individuals form judgments and preferences based on their feelings and beliefs towards an object or situation.

Mobile Payments

Transactions made for goods or services through a mobile device, such as a smartphone or tablet.