Which of the Following Involves Borrowing in One Currency Where

question 41

Multiple Choice

Which of the following involves borrowing in one currency where interest rates are low, and then using the proceeds to invest in another currency where interest rates are high?

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

---

Definitions:

Smaller Competitors

Companies with a smaller market share or resources compared to the leading firms in an industry.

Value-Based Pricing

Value-based pricing is a strategy where the price of a product or service is primarily determined by the perceived or estimated value to the customer rather than traditional cost-plus metrics.

Pricing Strategy

A method or plan a company uses to determine the best price for its products or services to maximize profits and market share.

Customer Perceptions

The views and attitudes consumers have towards a product or service, influenced by their experiences and expectations.