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Question
Which of the following refers to carry trade?A.Providing insurance or hedging against the risks that arise from volatile changes in exchange rates
B.A transaction between two parties that involves exchanging currency and executing a deal at some specific date in the future
C.Simultaneous purchase and sale of a given amount of foreign exchange for two different value dates
D.The purchase of securities in one market for immediate resale in another to profit from a price discrepancy
E.Borrowing in one currency where interest rates are low and then using the proceeds to invest in another currency where interest rates are high
Answer
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