You have equal amounts of money invested in a risk-free dollar-denominated investment and borrowed at the rate paid on the British pound. If you can earn a return during this, you have shown:
A) Interest rate arbitrage.
B) Interest rate parity
C) Purchasing power arbitrage
D) Purchasing power parity
A
Business
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What will be an ideal response?
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On a firm's income statement, net sales consists of ________
A) operating expenses minus cost of sales B) total sales minus allowances for returned goods and discounts C) cost of sales minus allowances for returned goods and discounts D) cost of sales minus operating expenses E) total sales minus operating expenses
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