Which of the Following Is an Example of Triangular Arbitrage

question 71

Multiple Choice

Which of the following is an example of triangular arbitrage initiation?

• A) Buying a currency at one bank's ask and selling at another bank's bid, which is higher than the former bank's ask.
• B) Buying Singapore dollars from a bank (quoted at $0.55) that has quoted the South African rand (ZAR)/Singapore dollar (S$) exchange rate at ZAR2.50 when the spot rate for the South African rand is $0.20.
• C) Buying Singapore dollars from a bank (quoted at $0.55) that has quoted the South African rand/Singapore dollar exchange rate at ZAR3.00 when the spot rate for the South African rand is $0.20.
• D) Converting funds to a foreign currency and investing the funds overseas.

Analyze the advantages and limitations of group versus individual problem-solving.

Learn the basic problem-solving procedure and the importance of training for both leaders and members.

Understand the optimal size for small group communication to be effective.

Recognize the importance of establishing criteria before listing alternatives in problem-solving.

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Definitions:

Marginal Product

The additional output that is produced by employing one more unit of a particular input, such as labor or capital.

Average Product

The output per unit of input, calculated by dividing total output by the total amount of input used.

Short-Run

A period during which at least one input, typically capital, is fixed, influencing the flexibility of businesses to adjust to market changes.

Marginal-Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as the quantity of production changes.