Triangle Arbitrage: I. Is a Profitable Situation Involving Three Separate Currency Exchange

question 68

Multiple Choice

Triangle arbitrage:
I. is a profitable situation involving three separate currency exchange transactions.
II.helps keep the currency market in equilibrium.
III.opportunities can exist in either the spot or the forward market.
IV.only involves currencies other than the U.S.dollar.

• A)I and IV only.
• B)II and III only.
• C)I, II, and III only.
• D)II, III, and IV only.
• E)I, II, III, and IV.

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Definitions:

Responding

The act of reacting to a stimulus or situation, often measured in psychological experiments.

Vicarious Conditioning

Learning that occurs through observing the reactions of others to an environment or stimulus rather than through direct experience.

Indirectly

Occurring in a roundabout way without a direct connection or straightforward path.

Discriminative Stimuli

Stimuli that signal the availability of reinforcement or punishment, guiding behavior in learning processes.