A Transaction That Exploits Differences in the Theoretical and Actual

question 1

Multiple Choice

A transaction that exploits differences in the theoretical and actual values of a foreign currency forward or futures contract is called

• A)covered interest arbitrage
• B)triangular arbitrage
• C)a conversion
• D)interest-rate parity
• E)none of the above

---

Definitions:

Rating Errors

Inaccuracies or biases that can occur when assessing the performance or abilities of individuals, affecting the fairness and accuracy of evaluations.

Primacy Effect

The tendency to remember information at the beginning of a body of information better than the information that follows.

Maintenance Engineer

A professional responsible for ensuring machinery and equipment operate efficiently and safely through regular maintenance, repairs, and improvements.

Behaviorally Anchored Rating Scales

A performance appraisal method that uses specific behavioral examples to rate employee performance on a scale.