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What Is Triangle Arbitrage

question 61

Essay

What is triangle arbitrage?
Using the U.S. dollar,the Canadian dollar,and the euro,construct an example in which triangle arbitrage exists,and then show how to exploit it.


Definitions:

Service Economy

An economic phase in which the service sector generates more wealth than the manufacturing sector of the economy, characterized by a high volume of services relative to goods.

Modified Capitalism

An economic system that incorporates elements of capitalism with various degrees of government intervention or social welfare policies.

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