The Interest Rate on Borrowings in Rhodia Is 2 Percent

question 49

Multiple Choice

The interest rate on borrowings in Rhodia is 2 percent and the interest rate on bank deposits in Maritia is 7.5 percent.In this scenario,a carry trade would be to

• A)borrow money in Maritian currency,convert it into Rhodian currency,and deposit it in a Rhodian bank.
• B)borrow money in Rhodian currency and invest in stocks with good growth potential in Rhodia.
• C)borrow money in Rhodian currency,convert it into Maritian currency,and deposit it in a Maritian bank.
• D)invest in bank deposits of Maritia and reinvest the earnings in Rhodia.
• E)invest in bank deposits of Rhodia and reinvest the earnings in Maritia.

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Definitions:

Vocal Intonations

Variations in pitch, tone, and pace of voice that can influence the meaning or emotional response to spoken words.

Body Posture

Body posture refers to the positioning of the body as a whole, often indicative of mood, confidence level, or health status.

Facial Expressions

Refer to the visible changes in the facial muscles that convey an individual's emotional state or reactions.

Nonverbal Communication

A process of conveying messages without the use of spoken words, which can include gestures, facial expressions, body language, and other visual cues.