The process by which identical products that are tradeable converge to the same price is called A) arbitrage B) hedging C) speculation D) risk aversion A quota refers to: A) a tax on imported goods B) a limit on the amount of a good that can be imported C) the range within which an exchange rate is allowed to fluctuate D) a limit on the size of a trade deficit If the Fed sterilizes the purchase of foreign assets, A) the monetary base is left unchanged. B) the monetary base rises by the amount of the purchase. C) the monetary base falls by the amount of the purchase. D) the monetary base may rise, fall, or remain unchanged depending on the reaction of domestic interest rates to the purchase. The "Volcker rule" under the Dodd-Frank Act A) prohibits proprietary trading and risky investments by banking institutions B) requires the FOMC to keep inflation under control C) regulates the implementation of the required reserve ratio D) requires the Fed to engage in quantitative easing