1.

People who practice arbitrage will create mutually consistent exchange rates if

A.  they operate in a country that practices exchange controls
B.  exchange rates are set properly by government
C.  productivity increases in the economy of the country whose currency is being traded
D.  they buy a currency in one market at a low price and then sell at a high price in another market
E.  the currency being traded appreciates
Answer» E.  the currency being traded appreciates


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