Which of the Following Is an Example of Triangular Arbitrage

question 52

Multiple Choice

Which of the following is an example of triangular arbitrage initiation?​

• A) ​buying a currency at one bank's ask and selling at another bank's bid, which is higher than the former bank's ask
• B) ​buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand (SAR)/Singapore dollar (S$) exchange rate at SAR2.50 when the spot rate for the rand is $.20
• C) ​buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand/Singapore dollar exchange rate at SAR3.00 when the spot rate for the rand is $.20
• D) ​converting funds to a foreign currency and investing the funds overseas

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Definitions:

1945

The year marking the end of World War II, leading to significant global political changes, including the establishment of the United Nations.

1939

The year marked by the start of World War II after Germany's invasion of Poland, significantly impacting global politics, society, and economics.

Toleration of Diversity

The acceptance and respect for diverse cultures, beliefs, and practices within a society.

Inclusion

The practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalized.