n NISM Certifications
XIII NISM Series XIII
Medium

Which of the following best describes the 'Carry Trade'?

Practice question from NISM Series XIII for SIF - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Borrowing in a low-interest currency and investing in a high-interest currency

    Correct answer

  2. B

    Borrowing in a high-interest currency and investing in a low-interest currency

  3. C

    Trading currencies based on technical analysis

  4. D

    Trading currencies based on economic indicators

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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