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 $.55) that has quoted the South African rand (SAR) /Singapore dollar (S$) exchange rate at SAR2.50 when the spot rate for the rand is $.20
C) buying Singapore dollars from a bank (quoted at $.55) that has quoted the South African rand/Singapore dollar exchange rate at SAR3.00 when the spot rate for the rand is $.20
D) converting funds to a foreign currency and investing the funds overseas
Correct Answer:
Verified
Correct Answer:
Verified
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