Assume the Following Bid and Ask Rates of the Pound

question 22

Multiple Choice

Assume the following bid and ask rates of the pound for two banks as shown below: ​
Bid
Ask
Bank C
$1) 61
$1) 63
Bank D
$1) 58
$1) 60
​
As locational arbitrage occurs:

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

---

Definitions:

Praise

The act of expressing approval or admiration; positively reinforces desired behaviors or achievements.

Rewards

Incentives or positive reinforcements provided to encourage certain behaviors or outcomes.

Childhood Asthma

A respiratory condition marked by spasms in the bronchi of the lungs, causing difficulty in breathing, commonly starting in childhood.

Nasal Corticosteroids

Medications used to treat and relieve nasal symptoms of allergies by reducing inflammation.