___________ is the effect on exchange rates when traders alter quotes to maintain a balance between amounts of currency bought and sold to "square off" at the end of a day.

Question

Quizplus · Accepted Answer

The inventory control effect refers to the impact on exchange rates when traders adjust their quotes to ensure a balance between the amounts of currency bought and sold, aiming to neutralize their positions by the end of the trading day. This is done to manage risk and avoid carrying large open positions overnight.

___________ Is the Effect on Exchange Rates When Traders Alter