Assume that the interest rate on borrowings in India is 1 percent while the interest rate on bank deposits in a U. S. bank is 4 percent. Carlos, an active currency trader, borrows in Indian rupees, converts the money into U. S. dollars and deposits it in a U. S. bank. What is the speculative element of this carry trade?
+5
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that the interest rate on borrowings in India is 1 percent while the interest rate on bank deposits in a U. S. bank is 4 percent. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » Assume that the interest rate on borrowings in India is 1 percent while the interest rate on bank deposits in a U. S. bank is 4 percent. Carlos, an active currency trader, borrows in Indian rupees, converts the money into U. S.