Triangular Arbitrage Would Take Place If the _____ Rate Between

question 64

Multiple Choice

Triangular arbitrage would take place if the _____ rate between two currencies was not _____ to the ratio of the two direct rates.

• A) cross; equal
• B) spot; equal
• C) cross; less than
• D) spot; less than
• E) cross; greater than

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Definitions:

Schizophrenia

A serious mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior, often involving hallucinations and delusions.

Diathesis

A predisposition or vulnerability for the development of an illness or disorder.

Meehl's Theory

Refers to Paul Meehl’s contributions to clinical versus statistical prediction of behavior and his work on the etiology of schizophrenia.

Frontal Lobe Deficiency

Refers to impairments in the frontal lobe of the brain, which can affect decision making, problem solving, impulse control, and social behavior.