Currency Arbitrage Refers to The

question 55

Multiple Choice

Currency arbitrage refers to the:

• A)conversion of one currency into another.
• B)technique of protecting against the potential losses that result from adverse changes in exchange rates.
• C)simultaneous and instantaneous purchase and sale of a currency for a profit.
• D)price at which a bank or a financial services firm is willing to sell a currency.
• E)practice of buying and selling a currency with the expectation that the value will change and result in a profit.

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Definitions:

Salivate

To salivate means to produce saliva, often in anticipation of food or in response to its presence, characterized by the physiological process of digestion.

Salivation in Dogs

An automatic response that occurs in dogs when they anticipate food, famously studied by Pavlov in his classical conditioning experiments.

Nobel Prize

A set of annual international awards bestowed in several categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances.

Classical Conditioning

A behavioral technique where two stimuli are systematically linked together; over time, a reaction originally elicited by the second stimulus is elicited by the first stimulus alone.