The Speculative Element of the Carry Trade Is That Its

question 93

Multiple Choice

The speculative element of the carry trade is that its success is based upon a belief that:

• A)there will be no adverse movement in exchange rates or interest rates.
• B)liquidity is the key factor in determining interest rates.
• C)increasing money supply will not drive inflation.
• D)spot exchange rates are more favorable than forward exchange rates.
• E)hedging insures a company against foreign exchange risks.

---

Definitions:

Social Stratification

The hierarchical organization of a society into levels or classes based on factors like wealth, occupation, education, and power.

Grave Goods

Items such as utensils, figurines, and personal possessions, symbolically placed in the grave for the deceased person's use in the afterlife.

Skeletal Stress

Physical stress on bones, often leading to adaptations or injuries, indicative of lifestyle or activities.

Inca Empire

A large empire in pre-Columbian America, known for its advanced administrative, agricultural, and architectural achievements, centered in present-day Peru.