Opportunities for Arbitrage in Foreign Exchange Markets Throughout the World

question 48

Multiple Choice

Opportunities for arbitrage in foreign exchange markets throughout the world are:

• A) available only in the lag period between the opening of different markets around the world.
• B) plentiful, particularly in markets trading in U.S. dollars.
• C) fleeting because technology enables trading that quickly eliminates these opportunities.
• D) non-existent, as government regulations restrict arbitrage.

---

Definitions:

Part-Time

Employment with fewer hours per week compared to full-time positions, offering limited work time and often fewer benefits.

Gross Pay

The total pay, which is the sum of an employee’s hourly pay and overtime pay.

Social Security Tax

A mandatory government tax taken from workers' earnings to fund the Social Security program, which provides retirement, disability, and survivor benefits.

Medicare Tax

A federal tax deducted from an individual's wages to fund the Medicare program, which provides healthcare benefits to eligible elderly and disabled individuals.