The Exchange Rate Is Kept the Same Across Geographically-Separate Markets

question 20

Multiple Choice

The exchange rate is kept the same across geographically-separate markets by

• A)hedging.
• B)speculation.
• C)government regulation.
• D)arbitrage.

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Definitions:

Coke

A carbonated soft drink that is produced by The Coca-Cola Company, or a fuel made by heating coal or oil in the absence of air.

Price Fixing

An illegal agreement between participants in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain market conditions so that the price is maintained.

Cooperative Behavior

Actions taken by individuals or organizations that are designed to benefit others or achieve a common goal through collaboration.

Product Differentiation

Product differentiation is a strategy businesses use to make their products unique and stand out from competitors, often through design, quality, or features.