Jin-Lo is investing money for his company. He notices that the interest rate on borrowing in Jakarta is 2 percent and the interest rate on bank deposits in Warsaw is 7.5 percent. In this situation, a carry trade would occur when Jin-Lo
A.borrows money in Jakarta currency and invests in stocks with good growth potential in Jakarta.
B.borrows money in Jakarta currency, converts it into Warsaw currency, and deposits it in a Warsaw bank.
C.invests in bank deposits of Warsaw and reinvests the earnings in Jakarta.
D.invests in bank deposits of Jakarta and reinvests the earnings in Warsaw.

Question

30-11-2022
Business

contestada

Jin-Lo is investing money for his company. He notices that the interest rate on borrowing in Jakarta is 2 percent and the interest rate on bank deposits in Warsaw is 7.5 percent. In this situation, a carry trade would occur when Jin-Lo
A.borrows money in Jakarta currency and invests in stocks with good growth potential in Jakarta.
B.borrows money in Jakarta currency, converts it into Warsaw currency, and deposits it in a Warsaw bank.
C.invests in bank deposits of Warsaw and reinvests the earnings in Jakarta.
D.invests in bank deposits of Jakarta and reinvests the earnings in Warsaw.

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okpalawalter8 okpalawalter8 · Answer 1 · 2022-12-02T17:56:44+01:00

Jin-Lo is investing money in his company. He notices that the interest rate on borrowing in Jakarta is 2 percent and the interest rate on bank deposits in Warsaw is 7.5 percent. In this situation, a carry trade would occur when Jin-Lo borrows money in Jakarta currency, converts it into Warsaw currency, and deposits it in a Warsaw bank. Option B

What is investing money?

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