The process of buying a currency low and selling it high is called:
A)forward exchange.
B)skimming.
C)profiteering.
D)arbitrage.

Question

Quizplus · Accepted Answer

The process of buying a currency low and selling it high is known as arbitrage. This involves taking advantage of differences in exchange rates between different markets, which can lead to a profit for the trader. Forward exchange refers to a contractual agreement to exchange currencies at a predetermined price in the future. Skimming and profiteering are not specific to currency trading and generally have negative connotations.

The Process of Buying a Currency Low and Selling It