If you engage in a carry trade and borrow and invest based on the interest rates of currencies, returns are based on the difference in rates so this is FALSE.
What does a Carry trade involve?
A carry trade involves borrowing in a currency where the interest rates are low and then investing in a place where the rate is high.
The returns/ profits come from the difference in interest rates because you would be borrowing at a low rate and gaining returns at a high rate.
Find out more on carry trades at https://brainly.com/question/7002664.
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