Foreign foreign money change rates measure one foreign money's power relative to a different. The power of a currency depends on a variety of elements such as its inflation fee, prevailing interest rates in its residence country, or the soundness of the government, to name a few. is executed through the consecutive change of 1 currency to another when there are discrepancies in the quoted costs for the given currencies. What is arbitrage example?Covered interest rate arbitrage is the practice of using favorable interest rate differentials to invest in a higher-yielding currency, and hedging the exchange risk through a forward currency contract. For occasion, if it takes fewer U.S. dollars…