Arbitrage with Two Currencies Is NOT Possible When

question 54

Multiple Choice

Arbitrage with two currencies is NOT possible when:

• A) there is an exchange rate difference in two markets.
• B) traders are familiar with markets.
• C) the exchange rates are in equilibrium, and the same is occurring in all markets.
• D) the exchange rates are extremely volatile.

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Definitions:

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A specific legal entitlement or permission that is restricted by terms or conditions.

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