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If Citi in New York Has a Buy Rate of $0.0127

question 52

True/False

If Citi in New York has a buy rate of $0.0127 per yen and Sumitomo Bank in Tokyo has a buy rate of $0.0157 per yen,an arbitrager could profit by buying yen in Tokyo and simultaneously sell them in New York.


Definitions:

Sales Puffery

Exaggerated or promotional statements made by sellers that are not meant to be taken literally and do not constitute legally binding promises.

Express Warranty

A promise or guarantee made by a seller about the condition, quality, or performance of a product.

'64 Mustang

A classic American car model introduced by Ford in 1964, known for its performance and style, marking the creation of the "pony car" class.

Full Warranty

A comprehensive guarantee that promises to repair or replace a defective product within a specified time frame without any cost to the consumer.

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