If the Quoted Cross-Exchange Rate Between Two Foreign Currencies Is

question 4

True/False

If the quoted cross-exchange rate between two foreign currencies is not aligned with the two corresponding exchange rates, investors can profit from triangular arbitrage.

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Definitions:

Alarm Reaction

The initial stage in the body's response to stress, involving the immediate activation of the sympathetic nervous system and the release of stress hormones.

General Adaptation Syndrome

A three-stage response model (alarm, resistance, exhaustion) describing the body's short-term and long-term reactions to stress.

Hans Selye

A pioneering Hungarian-Canadian endocrinologist who is known for his research on the stress response and for introducing the concept of General Adaptation Syndrome.

Meyer Friedman

A cardiologist known for co-developing the theory that the Type A behavior pattern increases the risk of heart disease.