Realignment in the Exchange Rates of Banks Will Eliminate Locational

question 65

True/False

Realignment in the exchange rates of banks will eliminate locational arbitrage. More specifically, market forces will increase the ask rate of the bank from which the currency was bought to conduct locational arbitrage and will decrease the bid rate of the bank to which the currency was sold to conduct locational arbitrage.

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Definitions:

Vibrios

A genus of spiral-shaped bacteria, some species of which can cause foodborne infection, typically acquired from eating undercooked seafood.

Parasites

Organisms that live on or in a host organism and get their food at the expense of their host.

Anaerobes

Organisms, especially bacteria, that do not require oxygen for growth and may even die in its presence.

Biochemical Reactions

Chemical processes that occur within living organisms to maintain life, involving substances like enzymes and hormones in metabolic pathways.