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

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Definitions:

Gladiolus

A genus of perennial flowering plants in the iris family known for its sword-shaped leaves and colorful flower spikes, popular in gardens and floral arrangements.

Stolon

Stem that grows horizontally along the ground and may give rise to new plants where it contacts the soil—e.g., the runners of a strawberry plant.

Bulb

An underground storage organ formed from swollen plant parts, containing nutrient reserves to support the plant's next cycle of growth.

Rhizome

Rootlike underground stem.