An Attempt to Profit by Converting Dollars to Yen, Yen

question 48

Multiple Choice

An attempt to profit by converting dollars to yen, yen to euros, and euros back to dollars would be an example of

• A) arbitrage.
• B) speculation.
• C) hedging.
• D) intervention.

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Definitions:

Price Level

A general price average spanning the full range of goods and services in an economy.

Aggregate Supply Curve

A visual depiction that illustrates the overall amount of products and services that producers in an economy can and are willing to offer across various price points.

Aggregate Demand Curve

A curve that shows the total demand for goods and services within an economy at various price levels, typically illustrating an inverse relationship between price level and output demanded.

Aggregate Supply

The total supply of goods and services that firms in a national economy plan on selling during a specific time period.