Question: If you borrow in the U . S . dollar, convert the borrowed funds to a foreign currency, earn the interest rate on the
If you borrow in the US dollar, convert the borrowed funds to a foreign currency, earn the
interest rate on the foreign currency, and at the end convert the foreign currency back to the
dollar and return the dollar loan plus interest, the interest rate on the foreign currency must
be higher than the dollar interest rate for you to have a profit on the investment." True or
false?
Select one:
a False
b True
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