Covered interest arbitrage involves both
A) the purchase of a foreign asset and a forward contract in the market for foreign exchange.
B) the purchase of a domestic asset and a spot contract in the market for foreign exchange.
C) the sale of a foreign asset and the purchase of a forward contract in the market for foreign exchange.
D) the sale of domestic stocks and the purchase of foreign bonds.
E) None of the above.
A
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In an oligopoly price-fixing game, each player tries to
A) minimize the market shares of its opponents. B) maximize its own market share. C) minimize the profits of its opponents. D) maximize its own profit.
The primary functions of money are:
a. velocity, liquidity, and transactions. b. speculative demand, measure of value, and precautionary demand. c. a medium of exchange, a unit of account, and a store of value. d. a store of value, heterogeneity, and a medium of exchange. e. currency value, fiat value, and accepted value.