BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is best described as selling a synthetic asset and simultaneously buying the actual asset?
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Arbitrage
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Diversifying
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Speculating
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Hedging
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Explanation:
Detailed explanation-1: -Q. Which of the following is best described as selling a synthetic asset and simultaneously buying the actual asset? Notes: Arbitrage is the simultaneous purchase and sale of an asset to profit from an imbalance in the price.
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