If an Investor Borrows Funds in Currency with a Low

question 16

Multiple Choice

If an investor borrows funds in currency with a low interest rate and loans those funds in a currency with a higher interest rate but the investor does not acquire a forward contract that assures an acceptable exchange rate for the loaned currency,the transaction is called a (an) ________________ transaction.

• A)ill-advised
• B)currency swap gamble
• C)carry trade
• D)uncovered interest arbitrage

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Definitions:

Naproxen

A nonsteroidal anti-inflammatory drug (NSAID) used to relieve pain, reduce inflammation, and lower fever.

Ibuprofen

A nonsteroidal anti-inflammatory drug (NSAID) commonly used for relieving pain, fever, and inflammation.

Central Nervous System

The complex of nerve tissues that controls the activities of the body. In vertebrates, it comprises the brain and spinal cord.

Suppressing Activity

Activities or actions taken to stop or reduce a process or function, often used in a biological or mechanical context.