Which Ratio Forms a Proportion With $\frac { 2 } { 5 }$

question 13

Multiple Choice

Which ratio forms a proportion with $\frac { 2 } { 5 }$ ?

• A) \(\frac { 7 } { 20 }\)
• B) \(\frac { 8 } { 20 }\)
• C) \(\frac { 3 } { 6 }\)
• D) \(\frac { 7 } { 19 }\)
• E) \(\frac{1}{5}\)

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Definitions:

Interest Rate Parity

A financial theory which suggests that the difference in interest rates between two countries is equal to the expected change in exchange rates between their currencies.

Arbitragers

Traders who buy and sell assets, such as stocks or commodities, in different markets or forms to profit from differing prices for the same asset.

Risk-Free Profits

Profits made from an investment that is considered to have no risk of financial loss.

Swap Market

The swap market is a financial market where parties exchange streams of cash flows or other financial instruments for a set period, often to manage risk or obtain better loan terms.