Arbitrage is the purchase of foreign currency on one market for immediate resale on a foreign market in order to profit from a price discrepancy.
a. true
b. false
a. true
You might also like to view...
_______________ —a term referring to the government practice of enacting laws to regulate prices instead of letting market forces determine prices.
a. Price ceiling b. Price floor c. Price control d. Subsidies
If Joshua buys 10 percent more compact discs when his income increases by 5 percent, then, for Joshua
a. price elasticity of demand for compact discs is greater than one b. compact discs are inferior goods c. compact discs are price inelastic d. compact discs are income inelastic e. compact discs are income elastic
Secondary reserves are
A. very short-term U.S. government securities. B. vault cash. C. deposits at the Federal Reserve District Bank. D. excess reserves.
The primary goal of firms that operate in perfectly competitive markets is to
A. Maximize revenues B. Maximize profits C. Equate marginal revenue with average total cost. D. None of the above are correct