An Arbitrageur in Foreign Exchange Is a Person Who

question 24

Multiple Choice

An arbitrageur in foreign exchange is a person who

• A)buys foreign currency, hoping to profit by selling it at a higher exchange rate at some later date
• B)earns illegal profit by manipulating foreign exchange
• C)causes differences in exchange rates in different geographic markets
• D)simultaneously buys large amounts of a currency in one market and sells it in another market
• E)mediates disputes when there is no agreement on exchange rates in international currency markets

---

Definitions:

Industrial Country

A nation with a relatively high level of industrialization, economic development, and standard of living.

Great Recession

The Great Recession refers to the severe global economic downturn that occurred from late 2007 through mid-2009, characterized by significant declines in economic activity and employment.

Federal Deficit

The shortfall when a government's total expenditures exceed its total revenues for a fiscal year, leading to borrowing or debt accumulation.

Productivity Growth

An increase in the efficiency of production, measured as the amount of output per unit of input over time.