To Capitalize on High Foreign Interest Rates Using Covered Interest

question 15

True/False

To capitalize on high foreign interest rates using covered interest arbitrage, a U.S. investor would convert dollars to the foreign currency, invest in the foreign country, and simultaneously sell the foreign currency forward.

---

Definitions:

Urine

A liquid by-product of metabolism in humans and many animals, expelled through the urinary system.

Bacteria

Microscopic, single-celled organisms that thrive in diverse environments, some of which can cause diseases.

Specimens

Samples or examples used for scientific testing or analysis.

Liquid Preparation

A form of medication that is administered in a liquid format, often used for ease of ingestion or to allow for immediate absorption.