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# Carry trade refers to a particular sort of foreign-exchange

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Carry trade refers to a particular sort of foreign-exchange [#permalink]  04 Apr 2013, 06:22
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Difficulty:

5% (low)

Question Stats:

86% (01:37) correct 14% (01:13) wrong based on 81 sessions
Carry trade refers to a particular sort of foreign-exchange trading, a term used loosely to describe any investment that looks suspiciously profitable, in which borrowing is done cheaply in funding currency to exploit high interest rates of target currency.

A. trade refers to a particular sort of foreign-exchange trading, a term used loosely to describe any investment that looks suspiciously profitable
B. trade, a term used loosely to describe any investment that looks suspiciously profitable, refers to a particular sort of foreign-exchange trading
C. trade, a term, refers to a particular sort of foreign-exchange trading used loosely to describe any investment that looks suspiciously profitable

Please do explain me with reasons to eliminate the options
[Reveal] Spoiler: OA

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Re: trade refers to a particular sort of foreig [#permalink]  04 Apr 2013, 06:29
skamal7 wrote:
Carry trade refers to a particular sort of foreign-exchange trading, a term used loosely to describe any investment that looks suspiciously profitable, in which borrowing is done cheaply in funding currency to exploit high interest rates of target currency.

A. trade refers to a particular sort of foreign-exchange trading, a term used loosely to describe any investment that looks suspiciously profitable
"a term" is wrong. What does it refer to ? to ""foreign-exchange trading"? in this case the logic is flawed
B. trade, a term used loosely to describe any investment that looks suspiciously profitable, refers to a particular sort of foreign-exchange trading
Correct
C. trade, a term, refers to a particular sort of foreign-exchange trading used loosely (subject: carry trade) to describe any investment that looks suspiciously profitable
Here the subject is "carry trade", and this subject cannot "describe" or "refer", as the sentence says. The subject for that part of the sentence should be "term" ( it correctly "describe any investement ...")
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Re: trade refers to a particular sort of foreig [#permalink]  04 Apr 2013, 06:50
Expert's post
A. trade refers to a particular sort of foreign-exchange trading, a term used loosely to describe any investment that looks suspiciously profitable

Here the problem is the modification of the appositive ‘a term” ; It looks as if to modify foreign exchange trading that is used to loosely describe some activity. Foreign exchange trading does not loosely describe anything; It is the carry trade that does.

B. trade, a term used loosely to describe any investment that looks suspiciously profitable, refers to a particular sort of foreign-exchange trading

We can see the appositive rightly modifying the subject” carry trade”; correct choice

C. trade, a term, refers to a particular sort of foreign-exchange trading used loosely to describe any investment that looks suspiciously profitable

‘foreign-exchange trading used loosely to describe’ foreign exchange trading is not used to loosely describe. It is the carry trade
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Re: Carry trade refers to a particular sort of foreign-exchange [#permalink]  13 May 2013, 08:39
skamal7 wrote:
Carry trade refers to a particular sort of foreign-exchange trading, a term used loosely to describe any investment that looks suspiciously profitable, in which borrowing is done cheaply in funding currency to exploit high interest rates of target currency.

A. trade refers to a particular sort of foreign-exchange trading, a term used loosely to describe any investment that looks suspiciously profitable
B. trade, a term used loosely to describe any investment that looks suspiciously profitable, refers to a particular sort of foreign-exchange trading
C. trade, a term, refers to a particular sort of foreign-exchange trading used loosely to describe any investment that looks suspiciously profitable

Please do explain me with reasons to eliminate the options

Please post the complete question and instead of coloring, underline the part.
Re: Carry trade refers to a particular sort of foreign-exchange   [#permalink] 13 May 2013, 08:39
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