GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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arbitrage
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cash transactions
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differential actions
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forward transactions
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Detailed explanation-1: -(Ans) Option D. Arbitrage. Arbitrage involves no risk and no capital of your own.It is an activity that takes adv…
Detailed explanation-2: -Arbitrageurs who seek to earn riskless profits by taking advantage of differences in interest rates among countries.
Detailed explanation-3: -Answer and Explanation: The correct option is (c). An example of arbitrage is “Roger buys a car in the US and brings it to Australia to sell at a much higher price". Arbitrage is a method of buying and selling of goods at different prices in different markets.
Detailed explanation-4: -trading of foreign exchange …or more exchange centres (two-point arbitrage or multiple-point arbitrage). For example, assume that Country A’s sovereign is exchanging at two to the dollar in New York City, while Country B’s franc is valued at five to the dollar.
Detailed explanation-5: -What Is Currency Arbitrage? A currency arbitrage is a forex strategy in which a currency trader takes advantage of different spreads offered by brokers for a particular currency pair by making trades. Different spreads for a currency pair imply disparities between the bid and ask prices.