Question: (i) Differentiate between arbitrage and speculation in the context of the FOREX market. Use illustrative and numerical examples. [10 marks] (ii) Explain fully why and

(i) Differentiate between arbitrage and speculation in the context of the FOREX market. Use illustrative and numerical examples. [10 marks]

(ii) Explain fully why and how Central Bank intervenes in the foreign exchange market. [12 marks]

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