ARBITRAGE Definition

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ARBITRAGE is the movements of funds to take advantage of differences in exchange or interest rates; such movements quickly eliminate any such differences.

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EXTERAL REVENUE, if governmental, is money collected by a government by imposing duties on imports and other international transactions.

TEASER RATE, in lending, is the initial rate set on adjustable-rate mortgages (ARMs) by the lender to attract prospective borrowers. It is the coupon rate an investor earns in the first year.

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