Assume the Following Bid and Ask Rates of the Pound

question 7

Multiple Choice

Assume the following bid and ask rates of the pound for two banks as shown below:

As locational arbitrage occurs:

• A) the bid rate for pounds at Bank A will increase;the ask rate for pounds at Bank B will increase.
• B) the bid rate for pounds at Bank A will increase;the ask rate for pounds at Bank B will decrease.
• C) the bid rate for pounds at Bank A will decrease;the ask rate for pounds at Bank B will decrease.
• D) the bid rate for pounds at Bank A will decrease;the ask rate for pounds at Bank B will increase.

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Definitions:

Limited Food Supply

A condition in which the availability of food is restricted or not adequate to meet the demand of a population.

Accumulation of Waste

The build-up of unwanted materials or substances in an environment or organism, which can lead to toxicity or pollution.

Population Growth

The increase in the number of individuals in a population, influenced by factors such as birth rates, death rates, and migration.

Biotic Potential

The maximum reproductive capacity of an organism under optimal environmental conditions.