The exchange rate is kept the same in all parts of the market by:
A) Forward cover
B) Hedging
C) Exchange speculation
D) Exchange arbitrage

Name: The exchange rate is kept the same in all parts of the market by: A) Forward cover B) Hedging C) Exchange speculation D) Exchange arbitrage
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

Exchange arbitrage involves buying and selling currency in different markets to take advantage of differing prices, thus helping to keep the exchange rate consistent across markets.

The Exchange Rate Is Kept the Same in All Parts