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.

---

Definitions:

Generalized Validity

Refers to the extent to which the results of an assessment can be reliably applied across different contexts, populations, or settings.

Primary Types

Refers to the main or most important categories or classifications within a broader system or framework.

Group Differentiation

The process by which members of a group distinguish themselves from members of other groups through social, cultural, or physical markers.

Construct Validity

The extent to which a test may be said to accurately and thoroughly measure a particular construct or trait.