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Question
The direct quote in New York is .015 dollar per Pakistani rupee. The direct quote in Pakistan is 60 rupees per dollar. This imbalance in rates can be corrected by arbitrage. A trader will ________ rupees in New York and ________ rupees in Pakistan, causing the direct quote in New York to ________.A) buy; sell; increase
B) buy; sell; decrease
C) sell; buy; decrease
D) sell; buy; increase
Answer
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