What Is the Role of an Arbitrageur in Foreign Exchange

question 42

Multiple Choice

What is the role of an arbitrageur in foreign exchange?  

• A) to buy foreign currency, hoping to profit by selling it at a higher exchange rate at some later date 
• B) to earn illegal profit by manipulating foreign exchange 
• C) to cause differences in exchange rates in different geographic markets 
• D) to simultaneously buy large amounts of a currency in one market and sell it in another market