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Which of the Following Is True of Arbitrage Opportunities in Foreign

Question 65

Multiple Choice

Which of the following is true of arbitrage opportunities in foreign exchange markets?


A) They cause long-term bandwagon effects.
B) They tend to be small and they disappear in minutes.
C) They tend to occur very frequently.
D) They are only valid for dollar transactions.
E) They provide insurance against foreign exchange risk.

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