The direct quote in New York is .015 dollar per Pakistani rupee. The direct quote in Pakistan is 60

rupees per dollar. This imbalance in rates can be corrected by arbitrage.

A trader will ________
rupees in New York and ________ rupees in Pakistan, causing the direct quote in New York to
________.
A) sell; buy; decrease B) buy; sell; increase
C) sell; buy; increase D) buy; sell; decrease


B

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