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Basic Question 1 of 3

In a carry trade practice, the funding currencies are:

A. low-yield currencies.
B. high-yield currencies.
C. either low- or high-yield currencies, depending on the investor's position.

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe the carry trade and its relation to uncovered interest rate parity and calculate the profit from a carry trade;

CFA® 2025 Level II Curriculum, Volume 1, Module 8.