The profit-motivated purchase and sale of interest-paying securities denominated in different currencies is called ________.

Question

Quizplus · Accepted Answer

Interest arbitrage involves the purchase and sale of interest-paying securities denominated in different currencies in order to generate profit. Currency conversion refers to the exchange of one currency for another, while currency hedging involves attempting to mitigate risk related to changes in currency exchange rates. Interbank interest rates are the rates at which banks lend money to one another.

The Profit-Motivated Purchase and Sale of Interest-Paying Securities Denominated in Different