Before Arbitragers Take Action with Respect to Exchange Rate Differentials

question 47

Multiple Choice

Before arbitragers take action with respect to exchange rate differentials

• A) central bank approval must be obtained.
• B) loans to cover transactions must be obtained.
• C) a market differential of at least 1¢ must exist between two currencies.
• D) a differential of as little as 1/16 of 1¢ may trigger action.

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