If interest rate parity is in effect, there are ________
A) no profitable opportunities for covered interest arbitrage
B) many opportunities for covered interest arbitrage
C) currency dealers will arbitrage interest rate differentials in different countries
D) currency dealers will be motivated to arbitrage forward market contracts
Answer: A
You might also like to view...
Under securitization, a company sells individual receivables with recourse at a large discount
Indicate whether the statement is true or false
Which of the following is usually used to define the recovery rate of a bond?
A. The value of the bond immediately after default as a percent of its face value B. The value of the bond immediately after default as a percent of the sum of the bond's face value and accrued interest C. The amount finally realized by a bondholder as a percent of face value D. The amount finally realized by a bondholder as a percent of the sum of the bond's face value and accrued interest
If a researcher is interested in measuring the effect of two independent variables on a dependent variable, he/she should use:
A. the Pearson correlation coefficient. B. simple regression. C. bivariate regression analysis. D. multiple regression analysis. E. the Spearman correlation coefficient.
Which of the following statements is an assumption pertaining to Theory X?
A. Workers are seen as being inclined to restrict work output, having little ambition, and avoiding responsibility if at all possible. B. People are not inherently lazy. C. Work is as natural as play or rest. D. Management believes that employees are capable of exercising self-direction and self-control in the service of objectives to which they are committed.