Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true?

• A)Arbitrage means the inability to make a profit without taking risk.
• B)Arbitrage means that an FI takes risks in order to make a profit.
• C)Arbitrage means that an FI does not take any risks and thus does not make a profit.
• D)Arbitrage means the ability to make a profit without taking risk.

---

Definitions:

Ownership Interest

An individual's or entity's legal rights and claims to an asset or property, typically reflecting the extent of ownership and stake.

Partnership Capital

The total amount of assets or equity contributed by all partners in a partnership.

Capital Balances

Capital balances reflect the amount of capital that owners or shareholders have invested in a company, encompassing both contributed capital and retained earnings.

Admission

The process or fee associated with entering or becoming a member of a particular organization, event, or institution.