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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 was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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.