_______________ is a process of taking advantage of differentials in interest rates of two currencies while eliminating exchange risk.

Related MCQs

• The __________ refers to the orderly relationship between spot and forward currency exchange rates and the rates of interest between countries.
• Difference between buying and selling rates in an exchange rate or interest rate quotation is known as
• Exchange rate between currency A and currency B, given the values of currencies A and B with respect to a third currency is known as
• Long– term securities denominated in two currencies is called as
• Increasing interest rates
• The following method does not result in sharing of an exchange risk between importer and exporter
• Which exchange rate theory focuses on the inflation – exchange rate relationship?
• Agreement to exchange one currency for another at a specified exchange rate and date is
• Determination of forward rates is explained by
• The __________ is especially well suited to offer hedging protection against transactions risk exposure.