The Actions Taken by Arbitrageurs in the Foreign Exchange Markets

question 40

Multiple Choice

The actions taken by arbitrageurs in the foreign exchange markets

• A)destabilize foreign exchange markets
• B)are highly risky
• C)have no effect on exchange rates
• D)help assure that exchange rates are equalized across all markets
• E)are the same as those undertaken by speculators

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Definitions:

Correcting Entry

An entry made in the accounting records to correct an error found in previously recorded transactions.

Accounts Payable

Liabilities owed by a business to its suppliers or vendors for goods or services received that have not yet been paid for.

Service Revenue

Income earned by a company for the provision of services, distinguished from revenue generated from the sale of goods.

Adjusting Entries

Records made in the journal at the period's end to correctly allocate income and expenditure to the period of their occurrence.