Triangle Arbitrage Can Occur When the ________ Rate Between Two

question 24

Multiple Choice

Triangle arbitrage can occur when the ________ rate between two currencies is 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:

Kelley's Covariation Model

A psychological theory proposed by Harold Kelley that explains how individuals attribute cause to events based on the consistency, distinctiveness, and consensus of the information available.

Internal Factor

An influence or element originating within a person, such as beliefs, values, skills, or psychology, that affects their behavior or attitudes.

Kelley's Covariation Model

A theory that explains how individuals attribute cause to behavior based on the consistency, distinctiveness, and consensus of the observed action.

High Distinctiveness

Describes situations or attributes that stand out significantly from others, making them more noticeable or memorable.