In a Covered Interest Arbitrage Transaction,the Borrowed Currency Is Known

question 42

Multiple Choice

In a covered interest arbitrage transaction,the borrowed currency is known as the ________________________ and the lent currency is known as the ___________________.

• A)target currency;funding currency
• B)funding currency;target currency
• C)funding currency;interest-bearing currency
• D)swap currency;target currency

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Definitions:

Telegraphic Speech

The use of short, precise words without grammatical markers such as articles, auxiliary verbs, and other connectives.

Overextension

A linguistic phenomenon observed in childhood language development where a child applies a word more broadly than its adult meaning.

Holophrase

A single word used by an infant that expresses a complex idea or request, indicative of early language development.

Telegraphic Speech

A stage in language development in young children where sentences are constructed with only essential words and grammar is often missing.