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.

---

Definitions:

Milpa

A traditional Mesoamerican agricultural system that involves the cultivation of maize, beans, squash, and other crops in a rotating cycle, promoting biodiversity and soil health.

Shifting cultivation

An agricultural practice in which plots of land are cultivated temporarily, then abandoned and allowed to revert to their natural vegetation while the cultivator moves on to another plot.

Swidden

A form of agriculture also known as slash-and-burn, where land is cleared by cutting and burning vegetation, then cultivated for several years and left fallow to regain fertility.

Bilateral Contract

A contract involving two parties where each side agrees to fulfill their side of the agreement.