In a covered interest arbitrage transaction,the borrowed currency is known as the ________________________ and the lent currency is known as the ___________________.
A)target currency;funding currency
B)funding currency;target currency
C)funding currency;interest-bearing currency
D)swap currency;target currency

Question

Quizplus · Accepted Answer

In a covered interest arbitrage transaction, the borrowed currency is referred to as the funding currency and the lent currency is known as the target currency.

In a Covered Interest Arbitrage Transaction,the Borrowed Currency Is Known