Question: 1.What are the differences between spatial arbitrage and triangular arbitrage? 2.Explain the reason why U.S. demand for the euro equals U.S. supply of U.S. dollars

1.What are the differences between spatial arbitrage and triangular arbitrage?

2.Explain the reason why U.S. demand for the euro equals U.S. supply of U.S. dollars for sale.

3.Explain the reason why European supply of euros for sale equals European demand for U.S. dollars.

4.What are the differences between floating and fixed exchange rate?

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