The exchange rate is kept within narrow limits in different monetary centers by:

Question

Quizplus · Accepted Answer

Exchange arbitrage is the practice of taking advantage of a price difference between two or more markets, in this case, different monetary centers, by buying and selling an asset to profit from the imbalance. This activity helps to keep the exchange rate within narrow limits across different locations by ensuring that significant discrepancies are quickly corrected as traders seek to profit from them.

The Exchange Rate Is Kept Within Narrow Limits in Different