Which of the Following Is an Example of Interest Arbitrage

question 21

Multiple Choice

Which of the following is an example of interest arbitrage?

• A)investing in debt instruments in different currencies or different countries
• B)selling U.S. dollars for Swiss francs, then selling Swiss francs for British pounds, then selling British pounds for U.S. dollars
• C)investigating different commercial banks to find the best exchange rate
• D)an American investing in a London-based company

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Definitions:

Scatterplot

A graphical representation of data points where each value in the dataset is represented by a dot, showing the relationship between two quantitative variables.

Y-Intercept

The point where a line or curve intersects the y-axis on a graph.

Regression Line

A straight line that best represents the relationship between an independent variable and a dependent variable in linear regression analysis.

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data.