MCQOPTIONS
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| 1. |
People who practice arbitrage will create mutually consistent exchange rates if |
| A. | they operate in a country that practices exchange controls |
| B. | exchange rates are set properly by government |
| C. | productivity increases in the economy of the country whose currency is being traded |
| D. | they buy a currency in one market at a low price and then sell at a high price in another market |
| E. | the currency being traded appreciates |
| Answer» E. the currency being traded appreciates | |