If the Interest Rate Is Higher in the U

question 79

Multiple Choice

If the interest rate is higher in the U.S. than in the United Kingdom, and if the forward rate of the British pound (in U.S. dollars) is the same as the pound's spot rate, then:

• A) U.S. investors could possibly benefit from covered interest arbitrage.
• B) British investors could possibly benefit from covered interest arbitrage.
• C) neither U.S. nor British investors could benefit from covered interest arbitrage.
• D) A and B

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Definitions:

Two Faces of Power

A theory suggesting that power in politics operates on two levels: decision-making and agenda-setting, where the latter can effectively control which issues come to the foreground.

Bachrach and Baratz

Scholars known for their work in political science, particularly on the second face of power, which involves the ability not just to make decisions but to control the agenda and prevent certain issues from being discussed.

Political Elites

A small group of people who hold significant power and influence in a political system, often shaping policies and decisions.

Economic Valorization

The process of assigning economic value to something, often influencing its perception and importance in society.