If Quoted Exchange Rates Are the Same Across Different Locations

question 67

Multiple Choice

If quoted exchange rates are the same across different locations, then ____ is not feasible.

• A)triangular arbitrage
• B)covered interest arbitrage
• C)locational arbitrage
• D)A and C

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Definitions:

Decision-making Process

The series of steps taken by individuals or businesses to identify and evaluate options before choosing a course of action.

Brands and Suppliers

Refers to the relationship between companies that produce goods (brands) and those that provide the raw materials or components (suppliers).

Reciprocity

A social norm or principle involving mutual exchanges of goods, services, or favors, often used in marketing to enhance customer loyalty.

Buyer-seller Relationship

The dynamic interaction and partnership between a purchaser and a provider of goods or services, often emphasizing trust and communication.