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Commerce · Q416

Business Finance

Graduate and Post Graduate · Commerce · question 416

Q416

Arbitrageurs in foreign exchange markets

A.
attempt to make profits by outguessing the market
B.
make their profits through the spread between bid and offer rates of exchange
C.
take advantages of the small inconsistencies that develop between markets
Answer
D.
need foreign exchange in order to buy foreign good

Answer: Option C

Solution

Answer: Option C
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