Currency arbitrage tends to result in identical yen/dollar exchange rates in New York and in Tokyo.
查看答案
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.
Arbitrage results in a riskless profit since a trader purchases a currency at a low price and simultaneously resells it at a higher price.
Which of the following refers to the international transfer of monetary capital caused by the financing or settlement of trade transactions?
A. Security capital flows
B. Trade capital flows
C. Bank capital flows
D. Speculative capital flows.