Multiple Choice
What effect does the process of arbitrage have on currency markets?
A) It interferes with the proper functioning of the currency markets.
B) It creates unnatural demand for currencies that are the subject of arbitrage transactions.
C) It makes them function properly and is responsible for the rational pricing of currencies.
D) It does not affect the currency markets because it involves both purchases and sales of the same currency.
Correct Answer:
Verified
Correct Answer:
Verified
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