Covered Interest Arbitrage (CIA)activities Will Result in

question 29

Multiple Choice

Covered Interest Arbitrage (CIA) activities will result in

• A)an unstable international financial markets.
• B)restoring equilibrium quite quickly.
• C)a disintermediation.
• D)no effect on the market.

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Definitions:

Disasters

Sudden catastrophic events that cause significant damage, disruption, and distress, often overwhelming communities and requiring emergency response.

Needs Theory

A conceptual framework that identifies and categorizes the fundamental motivations driving human behavior.

Drive-reduction Theory

A theory of motivation proposing that the presence of a need creates a drive to eliminate or satisfy that need, thereby restoring balance or homeostasis.

Homeostasis

The process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.