Assume the Following Information for a Bank Quoting on Spot

question 41

Multiple Choice

Assume the following information for a bank quoting on spot exchange rates:
$$\begin{array} { l l r } \text { Exchange rate of Singapore dollar in U.S. S } & = & \$ .60 \\\text { Exchange rate of pound in U.S. S } & = & \$ 1.50 \\\text { Exchange rate of pound in Singapore dollars } & = & \text { S } \$ 2.6\end{array}$$
Based on the information given, as you and others perform triangular arbitrage, what should logically happen to the spot exchange rates?

• A) The Singapore dollar value in U.S. dollars should appreciate, the pound value in U.S. dollars should appreciate, and the pound value in Singapore dollars should depreciate.
• B) The Singapore dollar value in U.S. dollars should depreciate, the pound value in U.S. dollars should appreciate, and the pound value in Singapore dollars should depreciate.
• C) The Singapore dollar value in U.S. dollars should depreciate, the pound value in U.S. dollars should appreciate, and the pound value in Singapore dollars should appreciate.
• D) The Singapore dollar value in U.S. dollars should appreciate, the pound value in U.S. dollars should depreciate, and the pound value in Singapore dollars should appreciate.

---

Definitions:

Constructive Eviction

An action by a landlord that significantly interferes with or diminishes the use of a property by a tenant, which leads to the tenant being effectively forced to leave.

Essential Services

Essential Services are basic services that are deemed necessary for the wellbeing of the community, such as water, electricity, and medical care.

Implied Warranty of Habitability

A legal doctrine that requires landlords to maintain residential rental properties in a condition fit for human habitation, even if not explicitly stated in the lease agreement.

Periodic-Tenancy Lease

A lease agreement that automatically renews for a period identical to the initial lease term, such as monthly or yearly, until terminated by either party.