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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