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A Middle Manager That Has to Stop Everything to Deal

question 38

Multiple Choice

A middle manager that has to stop everything to deal with a plumbing problem is acting as a(n) :


Definitions:

Spot Exchange Rate

The present rate at which one can purchase or sell a currency for immediate transfer.

Forward Exchange Rate

A contractually fixed exchange rate for the future exchange of currencies at a specified date, used to hedge against foreign exchange risk.

Arbitrage

The simultaneous purchase and sale of the same assets in different markets to exploit price differences for a profit.

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