1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liq [111]
3 years ago
5

Assume that the interest rate on borrowings in Argentina is 3 percent, but the interest rate on deposits in British banks is 9 p

ercent. A trader borrows 1 million Argentine pesos, then converts the money into British pounds and deposits it in a British bank. What is the trader involved in
Business
1 answer:
defon3 years ago
3 0

Answer:

carry trade

Explanation:

Carry trade can b defined as borrowing funds at a low interest rate and then investing those funds in assets that generate a higher return. This way, you profit will be the difference between the higher rate of return yielded by the asset minus the low interest rate paid for the loan. Carry trade is a type of arbitrage since you are obtaining a good at a certain price (low interest rate) and placing it at a higher price (higher rate of return).

You might be interested in
Question #5
andrey2020 [161]
Shsiieiwiwoowlqllalaksmsndnd
3 0
2 years ago
You are aware that your neighbor trades stocks based on confidential information he overhears at his workplace. This information
Margaret [11]

Answer:

Semi-strong Form Efficient.

Explanation:

There are three levels of market efficiency as weak, semi-strong and strong.

In a semi-strong form efficient market, the stock prices change independently of the previous return points and the current information so it is not possible to predict the future stock prices.

The example given in the question, which states that the neighbor has non-public information, can be classified as a semi-strong form efficient market.

I hope this answer helps.

6 0
3 years ago
Which of the following is an example of an activity undertaken by an​ entrepreneur? A. being promoted to the position of Chief o
luda_lava [24]

Answer:

C) starting a snow cone business

Explanation:

An entrepreneur is someone who decides to start his own business, usually a small business. Only option C refers to starting a new business.

Option A and B refer to positions where you are employed by the government (being a government employee is the opposite of being an entrepreneur).

Option D refers to painting your kitchen not opening a new business.

5 0
3 years ago
Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warra
Gnom [1K]

Answer:

Product warrant liability to be reported as on 31.12.2021* is $3.124

<em>*The procedures are attached in a microsof excel document. </em>

Explanation:

This amount will be recognized as a liability only if product warranty amount can be rmeasured reliabily and there is probability that there will be an outflow of funds.

Download xlsx
6 0
3 years ago
Which of the following is a contrary indicator?A) odd-lot tradingB) breadth of market and market volumeC) short-interest and the
garri49 [273]

Answer:

Short Interest and the Advance/Decline line

Explanation:

The Short Interest and the advance/descent line, also known as the AD line, is an indicator of market amplitude that gives the same weight to all the values ​​of an index or market. The advance/descent line, also known as the AD line, is an indicator of market breadth that gives the same weight to all the values ​​of an index or market.

The advance / descent line is an indicator of market breadth because it informs us of the general market movement. Similarly, when we say that it gives the same weight to all stock index values, we are saying that for the forward / down line all values ​​are equally important.

What really interests this indicator, being of market breadth, is to see if the price movement is accompanied by the movement of the indicator.

4 0
3 years ago
Other questions:
  • The table below shows the values for several different components of GDP.
    13·1 answer
  • Lily's Pastries produces cupcakes, which sell for $5.10 each. During the current month, Lily produced 3200 cupcakes, but only so
    5·2 answers
  • The Sisyphean Company has a bond outstanding with a face value of $ 1 comma 000 that reaches maturity in 10 years. The bond cert
    8·1 answer
  • Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $ 12
    10·1 answer
  • Multiple choice-- economics
    8·1 answer
  • Which Agile approach helps teams improve their project cycle time by considering team capacity?
    11·1 answer
  • Specialty store manager Terri is evaluating her employees for the first week of March. Her part-time sales associates have a sal
    14·1 answer
  • What is the standard deviation of a stock that has a 10% chance of earning 18%, a 10% chance of making 11%, a 40% chance of maki
    14·1 answer
  • true false Stocks, or equity securities, represent the purchase of ownership in a business corporation.
    14·1 answer
  • Removing stressors before they can cause stress would be considered what type of stress reduction strategy?.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!