Suppose the Exchange Rate Is Such That 1 U

question 21

Multiple Choice

Suppose the exchange rate is such that 1 U.S.dollar equals 1 euro in New York and 0.9 euros in Paris.An arbitrageur would sell euros

• A)in New York and buy U.S.dollars in Paris
• B)in Paris and buy U.S.dollars in New York
• C)in New York while buying them in Paris
• D)in Paris while buying them in New York
• E)at the same price in both cities

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Definitions:

Appropriate Behaviour

Conduct that is considered suitable or proper in a specific context, often conforming to cultural or societal norms.

Results-oriented

Focused on achieving specific outcomes or goals rather than on the process used to achieve those outcomes.

Utilitarian View

A view of ethical behaviour that holds that ethical behaviour delivers the greatest good to the most people.

Moral Principles

Fundamental beliefs about what is right, wrong, ethical, or unethical, guiding individuals' behavior and decision-making.