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:

Communication Methods

Various ways through which information is conveyed between individuals or groups, including verbal, non-verbal, written, and digital means.

Nonverbal Communication

The transfer of information through body gestures, facial expressions, and other physical movements rather than words.

Interpreter

A professional who translates spoken or signed language into another language, facilitating communication between people who do not share a common language.

Community Assessment

A systematic process of gathering and analyzing information to identify the needs, resources, and capabilities of a community.