Which of the Below Statements Is FALSE

question 50

Multiple Choice

Which of the below statements is FALSE?

• A) In the real world, it is rare that the theoretical cross rate, as computed from actual dealer dollar exchange rate quotes, will differ from the actual cross rate quoted by dealers.
• B) Arbitraging to take advantage of cross-rate mispricing is called triangular arbitrage, so named because it involves positions in three currencies.
• C) The arbitrage keeps actual cross rates dissimilar to theoretical cross rates.
• D) Barring any government restrictions, riskless arbitrage will assure that the exchange rate between two countries will be the same in both countries.

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Definitions:

Supply Chain Profitability

The overall financial gain generated through the management and coordination of the supply chain, encompassing all stages from material sourcing to product delivery to the end customer.

Spot Market

A public financial market in which commodities or financial instruments are traded for immediate delivery.

Demand

The quantity of a product or service that consumers are willing and able to buy at a given price.

Differential Pricing

A strategy where the same product or service is sold at different prices to different market segments based on various factors.