________ Seek to Profit from Trading in the Market Itself

question 46

Multiple Choice

________ seek to profit from trading in the market itself rather than having the foreign exchange transaction being incidental to the execution of a commercial or investment transaction.

• A) Speculators and arbitrageurs
• B) Foreign exchange brokers
• C) Central banks
• D) Treasuries

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Definitions:

Less Elastic

Describes a demand that is relatively unresponsive to changes in price, indicating that consumers' buying habits do not significantly alter with price fluctuations.

More Elastic

Describes demand that is highly sensitive to changes in price, where consumers significantly alter their quantity demanded with slight price variations.

Price-Discriminating Firm

A company that engages in the practice of charging different prices for the same product in different markets or segments.

Elastic Demand

Refers to a situation where the quantity demanded of a good or service significantly changes in response to a change in price.