If the Prices Differed in London and New York and a Dealer

question 95

Multiple Choice

If the prices differed in London and New York and a dealer spent $1 million to purchase ×125 million,then sold that ×125 immediately for $1.046666 million,the trader would earn a profit of $46,666 on the transaction.This is accomplished through

• A) arbitrage.
• B) skimming.
• C) FDI.
• D) pre exchange agreements.
• E) buying low and selling high.

---

Definitions:

Large Intestine

The final section of the digestive system, responsible for absorbing water and electrolytes and forming and storing feces.

Digestion

The biological process by which food is broken down into smaller components, making nutrients available for absorption into the body.

Absorption

The process by which substances are taken up into or across tissues, such as the absorption of nutrients by the intestines.

Amylase

An enzyme produced primarily by the pancreas and salivary glands that helps in the digestion of carbohydrates by breaking down starch into sugar.