Which of the Following Can Act as Effective Factors Preventing

question 22

Multiple Choice

Which of the following can act as effective factors preventing arbitrage?

• A)search costs
• B)transportation costs but not transaction costs
• C)transaction costs but not tariffs
• D)piracy

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Definitions:

Novation

The act of replacing an obligation to perform with a new obligation or replacing a party to an agreement with a new party.

Mortgage

A legal agreement by which a bank, building society, etc., lends money at interest in exchange for taking the title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Assignment

The transfer of rights or property from one party to another.

Delegation

The act of assigning responsibility or authority from one person or group to another.