For Locational Arbitrage to Be Possible, One Bank's Ask Rate

question 80

True/False

For locational arbitrage to be possible, one bank's ask rate must be higher than another bank's bid rate for a currency.

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Definitions:

Coercion

The act of compelling or forcing someone to act in a certain way by use of threats or pressure.

Ingratiation

A psychological technique where an individual attempts to become more attractive or likable to another, often through flattery or other means.

Reward Power

A form of control where a person or entity uses rewards or incentives to encourage desired behaviors.

Incentive

Something that motivates or encourages an individual to perform an action or behave in a certain way, often seen in contexts like workplaces or economies.