C.  international trading


            D.  an efficient market




29) What keeps foreign exchange quotes in two different countries in line with each other?


            A.  Cross rates


            B.  Forward rates

            C.  Arbitrage


            D.  Spot rates




30) One reason for international investment is to reduce


            A.  portfolio risk


            B.  price-earnings (P/E) ratios


            C.  advantages in a foreign country

            D.  exchange rate risk





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