Question 8 A fixed exchange rate system is one that uses another country's currency as its own. True False Question 10 The dollar to Euro exchange rate system can best be characterized as a free float managed float target zone arrangement fixed rate system hybrid system Question 12 3 pts The overwhelming majority of foreign exchange transactions involve banks buying and selling foreign exchange True False Question 13 3 pts Arbitrage is the purchase of assets or commodities on one market for immediate resale on another in order to profit from a price discrepancy. True False