Anita, an employee at ABX Partners, a hedge fund firm, has ...

[Sufayan.ah]

Anita, an employee at ABX Partners, a hedge fund firm, has purchased euros because she believes that the euro will strengthen against other currencies. Which term best describes Anita's activities?
 
  A) arbitrage
  B) speculation
  C) spot transaction
  D) outright forward

Question 2

Which of the following best describes arbitrage?
 
  A) using foreign exchange to fund new foreign direct investments
  B) purchasing foreign currency in anticipation of long-term trends
  C) using foreign-exchange instruments to speculate for profit
  D) purchasing foreign currency on one market for immediate resale on another market

[manuelcastillo]

Answer to Question 1

B

Answer to Question 2

D