Which of the Following Is an Example of Triangular Arbitrage

question 42

Multiple Choice

Which of the following is an example of triangular arbitrage initiation?

• A) Buying a currency at one bank's ask and selling at another bank's bid, which is higher than the former bank's ask.
• B) Buying Singapore dollars from a bank (quoted at $0.55) that has quoted the South African rand (ZAR)/Singapore dollar (S$) exchange rate at ZAR2.50 when the spot rate for the South African rand is $0.20.
• C) Buying Singapore dollars from a bank (quoted at $0.55) that has quoted the South African rand/Singapore dollar exchange rate at ZAR3.00 when the spot rate for the South African rand is $0.20.
• D) Converting funds to a foreign currency and investing the funds overseas.

---

Definitions:

Words Each Day

The average number or the specific quantity of words spoken, written, or read by an individual on a daily basis.

Triangular Theory

A psychological theory by Robert Sternberg that proposes love can be understood in terms of three components: intimacy, passion, and commitment.

Romantic Love

A deep and intense emotional and physical attraction towards a partner, often characterized by a desire for a shared life.

Sexual Orientation

An inherent or immutable enduring emotional, romantic, or sexual attraction to other people, defined by the gender identities they are attracted to.