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:

Monthly Payments

Regular payments made over a specified period of time towards the settlement of a debt obligation, typically calculated on an amortization schedule.

Compounding Frequency

Compounding frequency refers to the number of times per year that earned interest is added to the principal balance of an investment, affecting the total interest earned over time.

APR Interest

Annual Percentage Rate; a measure that reflects the total interest to be paid on a loan, mortgage, credit card, or other financial product, factored as an annual rate.

Monthly

Pertains to something occurring, produced, or settled every month.