Assume the Following Information for a Bank Quoting on Spot

question 35

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.

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Definitions:

Interactive Exchanges

Communications or transactions between two or more parties that involve reciprocal actions and reactions, often in real time.

Sites Of Idleness

Sites Of Idleness refer to places or contexts that are associated with a lack of activity or productivity, often criticized in societal and economic discussions.

Implicit Knowledge

Implicit knowledge is the type of knowledge that is difficult to articulate or transfer to another person by writing it down or verbalizing it, often learned through experience.

Decoding

The process by which a recipient of a message interprets or makes sense of the message, often influenced by individual factors and sociocultural contexts.