Triangle Arbitrage: I.is a Profitable Situation Involving Three Separate Currency Exchange Transactions

question 89

Multiple Choice

Triangle arbitrage:
I.is a profitable situation involving three separate currency exchange transactions.
II.helps keep the currency market in equilibrium.
III.opportunities can exist in either the spot or the forward market.
IV.is based solely on differences in exchange ratios between spot and futures markets.

• A)I and IV only
• B)II and III only
• C)I, II, and III only
• D)II, III, and IV only
• E)I, II, III, and IV

---

Definitions:

Self-reward

The act of giving oneself a reward to positively reinforce one's own behavior or achievement.

Verbal/Symbolic

Relating to the use of words or symbols to communicate thoughts, ideas, or emotions.

Imaginal

Imaginal pertains to the use of imagination or visualization techniques, often employed in therapeutic settings to explore scenarios or rehearse coping strategies.

Covert Self-reinforcement

A psychological technique in which individuals reward themselves in subtle, often non-materialistic ways, to positively reinforce their own behavior.