Menichetti , 2004 . II .2 . Exchange Rates determined by Market Forces Market forces assure that the various exchange rates are brought into arrangement . If there are any inconsistencies between exchange rates of currencies in different markets , called the cross rates of traded currencies , arbitrage will eliminate the difference . The speed of today 's communications makes sure that currencies cannot stay out of line for long . Arbitragers keep an attentive eye on the possibility of cross-rate discrimination . This is a sure source...











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