Currency arbitrage tends to result in identical yen/dollar exchange rates in New York and in Tokyo.

Name: Currency arbitrage tends to result in identical yen/dollar exchange rates in New York and in Tokyo.
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Question

Quizplus · Accepted Answer

Currency arbitrage involves buying and selling currencies in different markets to take advantage of price differences. This tends to equalize exchange rates across markets, including the yen/dollar exchange rate between New York and Tokyo. Therefore, the statement is true.

Currency Arbitrage Tends to Result in Identical Yen/dollar Exchange Rates