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

---

Definitions:

PMT Function

It is a financial function that calculates the payment for a loan based on constant payments and a constant interest rate.

Rate

A measure or quantity considered in relation to another quantity or measure, often used to describe the speed, frequency, or cost of something.

Nper

A financial function that calculates the number of payment periods for an investment or loan based on constant payments and constant interest rates.

Fv

Future value; a finance function used to calculate the future value of an investment based on periodic, consistent payments and a steady interest rate.