A firm that buys foreign exchange in order to take advantage of higher – McqOptions

MCQOPTIONS

1.	A firm that buys foreign exchange in order to take advantage of higher foreign interest rates is
A.	speculating.
B.	demonstrating purchasing power parity.
C.	engaging in interest rate arbitrage.
D.	responding to fluctuations in the business cycle.
Answer» C. engaging in interest rate arbitrage.

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