Which of the Following Is True of Arbitrage Opportunities in Foreign

question 63

Multiple Choice

Which of the following is true of arbitrage opportunities in foreign exchange markets?

• A) They cause long-term bandwagon effects.
• B) They tend to be small and they disappear in minutes.
• C) They tend to occur very frequently.
• D) They are only valid for dollar transactions.
• E) They provide insurance against foreign exchange risk.

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Definitions:

Incomplete

A state of being not fully formed, finished, or lacking some parts.

Care

The provision of what is necessary for the health, welfare, maintenance, and protection of someone or something.

Generativity

The concern for establishing and guiding the next generation, often expressed through parenting, teaching, or mentorship.

Personal Constructs

Theoretical constructs in psychology that refer to the individual ways of construing or understanding the world and people around us, as proposed by George Kelly.