What are the cons of the strategy

Assignment Help Business Economics

Reference no: EM13852580

The interest rate affects the investment patterns in the economy. A friend of yours suggests a get-rich-quick scheme: Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit from the interest-rate differential.

Do you see any potential problems with this idea? Explain.

What are the cons of the strategy?

Reference no: EM13852580

Questions Cloud

What is the slope of the supply curve : What is the slope of the supply curve? What is the P-intercept of the supply curve? What is the slope of the demand curve? What is the P-intercept of the demand curve? What is the equilibrium price and quantity of apartments?

Psychometric properties of the test : Psychometric Properties of the Test

Model of aggregate demand and aggregate supply : Consumer spending during holiday seasons affects the aggregate demand (AD) in the economy. AD drastically declines during serious recessions. Explain what President Roosevelt might have been trying to achieve, using the model of aggregate demand and ..

Describe relationship between sale and supportive employment : Describe the relationship between sales and supportive employment. Provide an Excel spreadsheet that depicts your findings along with your analysis.

What are the cons of the strategy : The interest rate affects the investment patterns in the economy. A friend of yours suggests a get-rich-quick scheme: Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit ..

What are the role types of officers identified by r johnson : Describe the role ambiguity that Cos faced in the 1970s and 1980s. What are the role types of officers identified by R. Johnson? Explain the two areas where probation and parole officers have discretion

About the marginal cost : New York & Co. is considering a limited edition denim jacket. Because it is so special, the first few will sell for a very high price, the next for less, and so on. A curve on a graph is used to estimate the price of each jacket. The manufacturing eq..

Find the area of the indicated region under the standard : Find the area of the indicated region under the standard normal curve.

What is the company cost of capital : What is the company cost of capital? What is the after-tax WACC, assuming that the company pays tax at a 35% rate?

User Account

All Pages