If the Interest Rate Is Lower in the United States

question 47

Multiple Choice

If the interest rate is lower in the United States than in the United Kingdom, and if the forward rate of the British pound is the same as its spot rate:​

• A)U.S. investors could possibly benefit from covered interest arbitrage
• B)British investors could possibly benefit from covered interest arbitrage.
• C)neither U.S. nor British investors could benefit from covered interest arbitrage.
• D)A and B

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Definitions:

Single Parent

A parent who is raising children alone without the involvement of the other parent.

Montessori

An educational approach developed by Maria Montessori, emphasizing independence, hands-on learning, and collaborative play in a child-centered environment.

Freedom

The state of being free, usually referring to the absence of constraints in choice or action.

Specific Time

A defined or distinct point or period in the duration of an event or within a sequence of events.