What is a carry trade?

What will be an ideal response?


The carry trade involves borrowing low interest rate currencies and lending high interest rate currencies. If the high interest rate currency fails to depreciate as much as the interest differential is predicting, the carry trade has a positive return. The carry trade can be done by going long in currencies that are selling at a forward discount.

Business

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Of six letters (A, B, C, D, E, and F), two letters are to be selected at random. How many outcomes are possible?

A. 30 B. 11 C. 6! D. 15

Business

Clean surplus accounting for most common stock transactions holds for shares accounted for at market value. An exception to this is:

a. issuance of common equity shares for employee stock options exercises b. repurchase of common shares c. issuance of common shares to new shareholders in public exchanges d. none of these.

Business

Which of the following refers to the extent to which a person devotes mental-processing activity to a particular stimulus?

A) cognition B) attention C) affect D) interpretation E) exposure

Business

A company that forecasts sales, builds an inventory based on the forecast, holds the components in inventory until a customer order is received and then finalizes the product based on the order is using a

A. push-pull strategy. B. push strategy. C. supply strategy. D. pull strategy. E. demand strategy.

Business