Which of the following is also known as “capital flight”?
A. Security capital flows
B. Trade capital flows
C. Bank capital flows
D. Speculative capital flows.
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Which of the following refers to the transfer of capital between countries in order to avoid losses?
A. Security capital flows
B. Trade capital flows
C. Bank capital flows
D. Speculative capital flows.
Currency arbitrage tends to result in identical yen/dollar exchange rates in New York and in Tokyo.
If the exchange rate is $0.01 per yen in New York and $0.015 per yen in Tokyo, an arbitrager could profit by buying yen in Tokyo and simultaneously sell them in New York.
Which of the following refers to the international transfer of capital caused by mutual capital exchanges between banks and financial institutions?
A. Security capital flows
B. Trade capital flows
C. Bank capital flows
D. Speculative capital flows.