In the case where interest rates are higher in Canada, which of ...

[corkyiscool3328]

In the case where interest rates are higher in Canada, which of the following is an example of a carry trade
 a. Increase borrowing in the US, convert to Canadian dollars and invest in Canada
  b. Increase borrowing in the US and invest in the US
 c. Increase borrowing in Canada, convert to dollars and invest in the US
 d. Increase borrowing in Canada and invest in Canada

Question 2

Leaving a handsome tip for the waiter in full view of your dinner date is a
 a. Screening mechanism
  b. Signaling mechanism
  c. Way to waste money
  d. None of the above

[eliasc0401]

Answer to Question 1

a

Answer to Question 2

b