The Short-Term Movement of Funds from One Currency to Another

question 18

Multiple Choice

The short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates is known as

• A) currency arbitrage.
• B) currency speculation.
• C) currency hedging.
• D) currency risk mitigation.

---

Definitions:

Familiar Place

A location known to an individual through previous experience or frequent visitation, evoking recognition and often comfort.

Forgetting Curves

A graphical representation of how information is lost over time when there is no attempt to retain it.

Long-Term Memory

A type of memory capable of storing large amounts of information for potentially unlimited duration.

Short-Term Memory

A component of human memory system that is capable of holding a small amount of information in mind in an active, readily available state for a short period of time.