Which of the Following Might Discourage Covered Interest Arbitrage Even

question 1

Multiple Choice

Which of the following might discourage covered interest arbitrage even if interest rate parity does not exist?​

• A)transaction costs
• B)political risk
• C)differential tax laws
• D)all of the above

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Definitions:

Watchdog Function

The role of the media or other entities in monitoring governmental activities and alerting the public to wrongdoing or inefficiency.

Media Ownership

Pertains to the individuals or corporations who own controlling shares or interests in media companies, influencing what content is presented to the public.

Government Restrictions

Regulations or limitations imposed by governments on activities, operations, or freedoms to ensure public safety, order, or welfare.

Campaign Framing

The presentation and emphasis of certain aspects of a political campaign over others to shape public perception and influence voter opinion.