The fact that exchange rates are nearly identical in different markets around the world is due to:

Question

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The nearly identical exchange rates in different markets around the world are due to the actions of arbitrageurs. Arbitrageurs take advantage of the price differences in different markets to make a profit, which helps to eliminate any discrepancy in exchange rates. If exchange rates were different in different markets, arbitrageurs would buy in the market with the lower exchange rate and sell in the market with the higher exchange rate until the exchange rates were equalized. This process ensures that exchange rates are nearly identical in different markets around the world.

The Fact That Exchange Rates Are Nearly Identical in Different