In Which Case Will Locational Arbitrage Most Likely Be Feasible?​

question 29

Multiple Choice

In which case will locational arbitrage most likely be feasible?​

• A) ​One bank's ask price for a currency is greater than another bank's bid price for the currency.
• B) ​One bank's bid price for a currency is greater than another bank's ask price for the currency.
• C) ​One bank's ask price for a currency is less than another bank's ask price for the currency.
• D) ​One bank's bid price for a currency is less than another bank's bid price for the currency.

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or gender.

U.S. Population

The total number of people living in the United States, including all citizens, residents, and immigrants.

Poverty

A situation in which people or groups do not have enough money and basic necessities to meet the bare minimum living standards.

Gini Ratio

An indicator of the level of income distribution unevenness in a society, ranging from 0, which implies equal income for all, to 1, indicating one person possesses all the wealth.