Question

  Explain purchasing power parity and arbitrage? 

Answer 1

Purchase Power Parity

Purchase Power parity which indicates that to measure the different countries currencies in a required set of terminology.  The main features of the purchase power parity which are related to the economy of the country for their productivity and the measurement of the standard of livings of the country itself.  

Arbitrage

In a simple word arbitrage which indicates that the securites which are purchased from one source of market which can be salable with increased price to taken up the profit in this regard as well.  The useful of the arbitrage was to the traders who spend the money to buy and sell the and make the profit in this regard as well.