If Differences Occur for FX Rates Between Three or More

question 48

Multiple Choice

If differences occur for FX rates between three or more currencies,FX dealers may perform:

• A) locational arbitrage.
• B) triangular arbitrage.
• C) cross arbitrage.
• D) speculative arbitrage.

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Definitions:

Salespeople's Compensation

The payment plan designed for sales personnel, often including a combination of salary, commission, and other incentives based on performance.

Business Customer

An entity, typically a company or organization, that purchases goods or services for use in the production of other goods and services, rather than for personal use.

Missionary Salespeople

Sales representatives who promote their company's products indirectly, often by educating and building relationships with intermediaries rather than selling directly to end users.

Promotional Activities

Marketing efforts aimed at increasing awareness and sales of a product or service, often through advertising, discounts, or public relations campaigns.