Question: You borrow in the U . S . dollar, convert the borrowed funds to a foreign currency, ran the interest rate on the foreign currency,

You borrow in the U

.

.

dollar, convert the borrowed funds to a foreign currency, ran the interest rate on the foreign currency, and at the end convert th foreign currency back to the dollar and return the dollar loan plus interest. If the interest rate on the foreign currency is higher than the dollar interest rate, you would definitely make a profit on the investment? True or false?

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