Assume the Following Bid and Ask Rates of the Pound

question 39

Multiple Choice

Assume the following bid and ask rates of the pound for two banks as shown below:
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As locational arbitrage occurs:
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Bid
Ask
Bank A
$1) 41
$1) 42
Bank B
$1) 39
$1) 40

• 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:

Biological Factors

Physical or genetic elements that influence an individual's development, physiology, and behavior.

Feeding Disorders

Disturbances in eating behavior that result in altered consumption or absorption of food, which significantly impairs physical health or psychosocial functioning.

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits, which can significantly impact one's health and well-being.

Binge-Eating Disorder

A disorder characterized by recurrent episodes of eating large quantities of food in a short period of time, often accompanied by feelings of loss of control and guilt.