Which one of the following activities is associated with the 'Yen Carry Trade'?
1
Borrowing in Japanese yen at low interest rates and investing in higher-yielding foreign assets
2
Facilitating currency swaps between Japanese yen and other major currencies to hedge against exchange rate fluctuations
3
Implementing a coordinated monetary policy intervention to stabilize global interest rate differentials
4
Engaging in cross-border arbitrage by utilizing interest rate disparities between Japanese yen and emerging market currencies