If the Exchange Rate Is $0

question 4

True/False

If the exchange rate is $0.012 per yen in New York and $0.019 per yen in Tokyo,an arbitrage trade could profit by buying yen in Tokyo and simultaneously selling them in New York.

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Definitions:

Courts of Equity

Courts that decide cases on the basis of fairness and justice, applying principles of equity rather than strict legal rules.

Provincial Court

A provincial court is a lower-level court in Canada dealing with less serious criminal offences, family law matters, and other regulatory offences.

ADR

Alternative Dispute Resolution, a range of processes such as mediation and arbitration used to resolve disputes without going to court.

Speedy Resolution

The quick settlement of a dispute or legal case without prolongation.