Triangle Arbitrage: I

question 9

Multiple Choice

Triangle arbitrage: I. is a profitable situation involving three separate currency exchange transactions.
II) helps keep the currency market in equilibrium.
III) opportunities can exist in either the spot or the forward market.
IV) only involves currencies other than the U.S. dollar.

• A) I and IV only
• B) II and III only
• C) I, II, and III only
• D) II, III, and IV only
• E) I, II, III, and IV

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Definitions:

Resources

Assets, materials, and other components necessary for a company or individual to function effectively.

Planning Steps

The sequential actions or stages involved in devising a plan, including goal setting, strategy formulation, and action planning.

Planning Process

A systematic approach to defining goals, developing strategies, and outlining tasks and schedules to accomplish the objectives.

Enhance Results

To improve or increase the quality, value, or extent of outcomes.