Answer:
This question lacks answers
A. currency swap.
B. arbitrage.
C. backwardation.
D. straddle.
<u>The answer is </u><u>b.</u>
Explanation:
Arbitrage is a common practice used to gain profits from inefficient markets. Since most financial markets are inefficient by nature, dealers and similar business entities that have an interest in this kind of business practice.
The profit in arbitrage is based on the <u>imbalance in the two prices</u> on each market respectively. The term is mainly used for financial markets and various financial instruments (securities, bonds, currencies).
In the example above, the dealer becomes an arbitrageur by making a profit from the difference in the yen/dollar exchange rate in two markets (NY and London.)
Answer:
The statement is: True.
Explanation:
The Time Value of Money is a concept that states a dollar today is always worth more than a dollar tomorrow. The theory relies on the earning capacity of money. The approach is the reason why entrepreneurs prefer to capitalize on their investments the soonest so the more money available now will represent for them more money accrued in the future.
A withholding that you can see on your pay stub could include a health insurance payment or a retirement savings.
