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Assume that the euro/pound exchange rate quoted in London at 11:30 a.m. is f1= E1.21, and the euro/pound exchange rate quoted in Germany at the
Assume that the euro/pound exchange rate quoted in London at 11:30 a.m. is f1= E1.21, and the euro/pound exchange rate quoted in Germany at the same time is f1= E1.22. A currency trader in Germany uses pounds to purchase euro and then immediately sells the euro to buy pounds in London, thereby making a profit. The currency trader is most likely a O Dealer O Hedger O Speculator O Arbitrageur Question 6 3 pts Which of the following statements is most likely to be TRUE regarding a currency's price if the demand of the currency decreases? O The price of the currency remains constant. O The price of the currency increases. O The price of the currency decreases. O The price of the currency fluctuates randomly
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