Arbitrage works to create a general equilibrium of exchange rates in the foreign exchange market.
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Q6: An increase in the rate of inflation
Q7: Floating exchange rates are market determined, that
Q8: If the British government fixes the exchange
Q9: The International Monetary Fund is an organization
Q10: Low productivity in the U.S. appreciates the
Q12: Arbitrage keeps markets from reaching equilibrium.
Q13: When a currency is devalued, exporters benefit.
Q14: Currency appreciation benefits importers.
Q15: Foreign exchange reserves are critical to an
Q16: Tariffs and quotas are forms of exchange
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