Realignment in the Exchange Rates of Banks Will Eliminate Locational

question 65

True/False

Realignment in the exchange rates of banks will eliminate locational arbitrage. More specifically, market forces will increase the ask rate of the bank from which the currency was bought to conduct locational arbitrage and will decrease the bid rate of the bank to which the currency was sold to conduct locational arbitrage.

---

Definitions:

NCI Journal

Journal entries related to Non-Controlling Interest, representing the equity in a subsidiary not attributable to the parent company.

Transfer

The act of moving assets, liabilities, or ownership rights from one entity or account to another.