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

---

Definitions:

Hydrolyzed

The process where a compound undergoes decomposition as a result of interacting with water.

Crystallinity

The degree to which a solid material has a crystal structure, impacting its physical properties like melting point and hardness.

Polymer

Large molecules made from repeating subunits called monomers, utilized in various applications from plastics to DNA.

Reaction

A process in which substances interact to form new substances with different chemical and physical properties.