COVERED interest arbitrage (CIA), is where investors borrow in countries and currencies exhibiting relatively low interest rates and convert the proceeds into currencies that offer much higher interest rates
The transaction is "covered," because the investor does not sell the higher yielding currency proceeds forward.
Indicate whether the statement is true or false.
Answer: FALSE
Business
You might also like to view...
In the EOQ model, ________ costs are the variable costs per unit of holding an item of inventory for a specified time period
A) marginal B) order C) carrying D) processing
Business
The capital acquisition and repayment cycle does not include
A) payment of interest. B) payment of dividends. C) payment of vendor invoices. D) acquisition of capital through interest-bearing debt.
Business