The Fact That Exchange Rates Are Nearly Identical in Different

question 93

Multiple Choice

The fact that exchange rates are nearly identical in different markets around the world is due to

• A)the actions of speculators
• B)official action by central banks around the world
• C)the actions of arbitrageurs
• D)agreement by policy makers of the major industrial countries
• E)the actions of currency converters

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Definitions:

Dynamic Pricing Policy

A strategy where prices are adjusted in real-time based on demand, supply, and other market conditions.

Penetration Pricing

A marketing strategy that involves setting a low price for a new product to attract customers and gain market share quickly.

Odd-Even Pricing

A psychological pricing strategy where prices are set to just below a whole number to make the price appear significantly lower to consumers.

Deceptive Pricing Practices

Techniques used by sellers to mislead consumers about the true price of a product, making it seem cheaper than it actually is.