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Carry Trade,a Kind of Speculation,takes Advantage of The

Question 52

Multiple Choice

Carry trade,a kind of speculation,takes advantage of the:


A) temporary undervaluation of one currency vis-à-vis another.
B) disparity between spot exchange rates and forward exchange rates.
C) the collapse of the gold standard.
D) differences in interest rates between countries.
E) the rise of the fixed exchange rate system.

Correct Answer:

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