CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

True or False?

I. Covered interest differentials tend to disappear through covered interest arbitrage.
II. If the covered interest differential between two money markets is nonzero, there is an arbitrage incentive to move money from one market to the other.
Correct Answer: Both I and II are true.

User Contributed Comments 0

You need to log in first to add your comment.