As the currency swap market developed, the arbitrage opportunities for reduced funding costs that were available in the early days of the swap market became more common.

Question

Quizplus · Accepted Answer

As the currency swap market developed and became more efficient, arbitrage opportunities for reduced funding costs that were available in the early days of the swap market became less common, not more. This is because increased competition and better information dissemination reduced the inefficiencies that initially allowed for such arbitrage opportunities.

As the Currency Swap Market Developed, the Arbitrage Opportunities for Reduced