Ryan,a foreign-exchange dealer,sold U.S.dollars for Swiss francs in the U.S.,then sold Swiss francs for Japanese yen in Switzerland,and then sold the Japanese yen for U.S.dollars in the U.S.Ryan hopes that he will end up with more U.S.dollars than when he began.Which term best describes Ryan's actions?

Question

Quizplus · Accepted Answer

Ryan's actions describe arbitrage, which involves buying and selling assets in different markets with the aim of making a profit from price discrepancies. In this case, Ryan is exploiting the exchange rate differences between the three currencies to increase his US dollar holdings.

Ryan,a Foreign-Exchange Dealer,sold U