In the foreign exchange market, ________ seek all of their profit from exchange rate changes while ________ seek to profit from simultaneous exchange rate differences in different markets.
A) wholesalers; retailers
B) central banks; treasuries
C) speculators; arbitrageurs
D) dealers; brokers

Question

Quizplus · Accepted Answer

Speculators seek to profit solely from exchange rate changes, while arbitrageurs seek to profit from simultaneous exchange rate differences in different markets. Wholesalers and retailers are not relevant terms in the foreign exchange market, and while central banks and treasuries may participate in the market, their goals are typically not focused solely on making a profit from exchange rate changes. Dealers and brokers are also involved in the market but do not have the same profit-seeking motivations as speculators and arbitrageurs.

In the Foreign Exchange Market, ________ Seek All of Their