Multiple Choice
Before arbitragers take action with respect to exchange rate differentials
A) central bank approval must be obtained.
B) loans to cover transactions must be obtained.
C) a market differential of at least 1¢ must exist between two currencies.
D) a differential of as little as 1/16 of 1¢ may trigger action.
Correct Answer:
Verified
Correct Answer:
Verified
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