Country X's short-term interest rates are slightly higher than its long-term rates.

CIMA F3 Question Answer

Country X's short-term interest rates are slightly higher than its long-term rates. Which THREE of the following statements are correct?

This difference may reverse.

Country X's currency is expected to strengthen in the long-term.

Interest rates will definitely fall.

Interest rates are expected to fall.

A long-term borrower would save by taking out a short-term loan and then refinancing

F3 PDF/Engine

Get 65% Discount on All Products, Use Coupon: "ac4s65"