1.Arbitrage strategy is:

Select one:

a.Action to capitalise on a discrepancy in quoted price

b.Buying currency at a low price from one location and sell it immediately at a higher price in another location

c.Making profit after transaction cost

d.None of these

e.Investing money at higher interest rate to make a profit

2._____________ and _____________ are sold to investors in a capital market other than the country that issued the denominating currency.

Select one or more:

a.Dim sum bond

b.Masala bond

c.Yankee bond

d.Bulldogs bond

e.Foreign bond

3.As an investor from Australia, what factors would you consider before investing in emerging markets?

Select one or more:

a.Potential for diversification

b.The quality of corporate governance in the country

c.Direct purchases of foreign stocks

d.Investment in MNC stocks

e.International mutual funds