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19 April, 12:56

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

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  1. 19 April, 16:01
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    A carry trade occurs when jinlo borrow in Jakarta at 2% and go and deposit the money in the bank in Warsaw so as to have the 7.5% interest on deposit

    Explanation:

    A carry trade is a trading strategy that involves borrowing at a low-interest rate and investing in an asset that provides a higher rate of return. So in this case, Jinlo borrowed at low interest and deposited to receive high interest, so a carry trade is what he did.
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Home » Social Studies » 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
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