Assume That the Interest Rate on Borrowings in Japan Is

question 26

Multiple Choice

Assume that the interest rate on borrowings in Japan is 1 percent, while the interest rate on deposits in Australian banks is 5 percent. A trader borrows in yen and then converts the money into Australian dollars and deposits it in an Australian bank to make a 4 percent margin. Which type of trade is this an example of?

• A) Swing trade
• B) Carry trade
• C) Channel trade
• D) Price action trade

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Definitions:

Kidney Inflammation

Medical condition also known as nephritis, characterized by swelling and irritation of the kidneys, which can impact function.

Dysuria

Difficult or painful urination, which can be a symptom of various medical conditions.

Hematuria

Abnormal presence of blood in the urine.

Costovertebral Angle

The angle formed by the vertebral column and the downward slope of the last rib, an area often examined for tenderness accompanying kidney problems.