Investor engage in _____ when they move funds into foreign currencies in order to take advantage to interest rates abroad that are higher than domestic interest rates ?

Related Mcqs:

Which financial instrument provides a buyer the right to purchase or sell a fixed amount of currency at a prearranged price, within a few days to a couple of years ?

A. letter a credit B. foreign currency option C. cable transfer D. bill of exchange...

Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?

A. America’s demand for Swiss merchandise rises B. America’s demand for Swiss merchandise falls C. Switzerland’s demand for American merchandise rises D. Switzerland’s demand for American merchandise falls...

The reduction or covering of foreign exchange risk is called ?

A. hedging B. speculation C. intervention D. arbitrage...

Which of the following is not a reason why Joe Smith (an American) might participate as a demander in the foreign exchange market ?

A. his desire to open a bank account in Japan B. his desire to purchase an automobile produced domestically C. his desire to travel to Europe D. his desire to purchase Treasury bills issued by the British government...

All currencies other than the domestic currency of a given country are referred to as ?

A. hard currency B. foreign exchange C. reserve currencies D. near monies...