Triangle Arbitrage Is a Profitable Situation Involving Three Separate Currency

question 295

True/False

Triangle arbitrage is a profitable situation involving three separate currency exchange transactions.

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Definitions:

Holder

A legal term referring to an individual or entity that possesses a negotiable instrument, such as a check or promissory note, and has the right to collect and enforce the instrument.

Dishonored

A term commonly used in banking and finance referring to a cheque or payment that has been refused or cannot be processed.

Drawee

The party that must obey an order. In the context of banking, the drawee is the bank that must pay the funds ordered by a customer’s check.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money to a specified person, which can be transferred by endorsement or delivery.