Covered Interest Arbitrage Ensures

question 1

Multiple Choice

Covered interest arbitrage ensures

• A)exchange parity.
• B)purchasing power parity.
• C)interest parity.
• D)All of the above.

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Definitions:

Horizontal Merger

Merger that joins firms in the same industry for the purpose of diversification, increasing customer bases, cutting costs, or expanding product lines.

Vertical Merger

Merger that combines firms operating at different levels in the production and marketing process.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or other business activity.