The Effect of Arbitrage Activities in Foreign Exchange Markets Is

question 34

Multiple Choice

The effect of arbitrage activities in foreign exchange markets is to

• A) create disparity among the rates of various currencies.
• B) eliminate or reduce exchange rate quotation differentials.
• C) hinder the otherwise smooth functioning of the exchange markets.
• D) create wide swings in quotations from period to period.

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Definitions:

Romanian Orphanages

Institutions in Romania, noted in studies for their impact on child development due to deprivation and neglect experienced by children.

Adopted

A person who has been legally taken by another family as their own child, granting them the same rights and privileges as a biological child.

Months

Units of time, typically used in calendars, that roughly correspond to the period of time it takes for the moon to orbit the Earth, commonly divided into 12 periods in a year.