Triangle Arbitrage

question 52

Multiple Choice

Triangle arbitrage:

• A) is illegal in the U.S.
• B) prevents the currency markets from obtaining equilibrium.
• C) is a profitable opportunity involving three separate currency exchange transactions.
• D) opportunities can exist only in the forward markets.
• E) is based solely on differences in exchange rates between spot and futures markets.

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Definitions:

Apgar Scale

Standard measurement of a newborn's condition; it assesses appearance, pulse, grimace, activity, and respiration.

Newborn's Appearance

Describes the physical characteristics and initial health status of a baby immediately after birth.

Pulse

The rhythmic throbbing of the arteries as blood is propelled through them, typically felt in the wrists or neck.

Reflex

An automatic, involuntary response to a specific stimulus.