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A Price Taker in the Foreign Exchange Market Is

Question 4

Multiple Choice

A price taker in the foreign exchange market is:


A) a hedger who wants to avoid risk
B) a speculator who buys a currency at the current exchange rate, hoping that it would appreciate
C) a market participant who takes the current exchange rate to be the equilibrium exchange rate
D) a market participant who buys and sells currencies at the exchange rates quoted by large commercial banks

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