Locational Arbitrage Explains Why Spot Exchange Rates Among Banks at Different

question 64

True/False

Locational arbitrage explains why spot exchange rates among banks at different locations normally will not differ by a significant amount.

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Definitions:

Micrometer

A precision instrument used to measure small distances or thicknesses between two points, typically used in engineering and machining.

Depolarizing Currents

Electrical currents that reduce the membrane potential of neurons, making the inside less negative and closer to the threshold for firing an action potential.

Action Potentials

short-lasting events in which the electrical membrane potential of a cell rapidly rises and falls, allowing neurons to transmit signals.

Synaptic Gaps

The small spaces between neurons across which neurotransmitters travel to transmit signals from one neuron to another.