The Actions Taken by Arbitrageurs in the Foreign Exchange Markets

question 40

Multiple Choice

The actions taken by arbitrageurs in the foreign exchange markets

• A)destabilize foreign exchange markets
• B)are highly risky
• C)have no effect on exchange rates
• D)help assure that exchange rates are equalized across all markets
• E)are the same as those undertaken by speculators

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Definitions:

Relatively Permanent

Describes the enduring nature of changes in behavior or abilities due to learning or development, indicating that such changes are not easily reversible.

Muscle Memory

The ability of the body to perform a movement or series of movements with improved efficiency and accuracy after repeated practice, due to neurological and muscular adaptation.

Adaptation

The process by which organisms adjust to changes in their environment or internal processes to maintain homeostasis.

Reflex Response

is an automatic, involuntary reaction to a stimulus that does not involve a conscious decision to act.