Assume the Following Information for a Bank Quoting on Spot

question 42

Multiple Choice

Assume the following information for a bank quoting on spot exchange rates: 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:

Temperamental Individuality

Variations among individuals in their emotional responses, levels of activity, and attentional capacity from birth, often considered as the foundational aspects of personality.

Age

The length of time that a person or thing has existed, typically measured in years.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Shy

A temperament or personality trait characterized by feelings of nervousness or discomfort in social situations.