Foreign Exchange Arbitrage Refers To

question 60

Multiple Choice

Foreign exchange arbitrage refers to:

• A) the simultaneous purchase and sale of a foreign currency asset in different markets to take advantage of a price differential.
• B) actions taken to lower currency trading risks and make the markets safer.
• C) the forgiving of penalties and other punishments for illegal foreign exchange activities.
• D) government purchases or sales of a nation's own currency in international markets to change or stabilize the value of the currency.

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Definitions:

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Independent Variable

In an experiment, it is the variable that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

In experimental and statistical research, the variable that is being tested and measured, expected to change as a result of manipulations in the independent variable.

Vocabulary Learning

The process of acquiring new words and phrases to improve communication and comprehension abilities in a language.