Uncovered Interest Parity Implies That Interest Arbitrage Will

question 137

Multiple Choice

Uncovered interest parity implies that interest arbitrage will:

• A) earn a premium.
• B) earn less than a normal return.
• C) not be possible.
• D) end up raising real rates of interest.

---

Definitions:

Polyuria

a condition characterized by the production of abnormally large volumes of dilute urine, often a symptom of various medical conditions.

Oliguria

The medical term for producing abnormally small amounts of urine.

Dysuria

Painful or difficult urination, often indicating a urinary tract infection.

Anuria

The failure of the kidneys to produce urine, leading to a complete lack of urine output.