What Is Triangle Arbitrage

question 61

Essay

What is triangle arbitrage?
Using the U.S. dollar,the Canadian dollar,and the euro,construct an example in which triangle arbitrage exists,and then show how to exploit it.

---

Definitions:

Individual Income

The total amount of money earned by a person from all sources before taxes.

Tax Competition

It refers to the phenomenon where countries or jurisdictions compete against each other to attract business through lower tax rates or more favorable tax regimes.

Federal Taxes

Federal taxes are financial charges imposed by a government on individuals, corporations, and other entities' income, property, or transactions to fund public services and obligations.

Regressive

A term referring to a tax system where the tax rate decreases as the amount subject to taxation increases, often disproportionately affecting lower-income individuals.