Assume the cross rate is off. Explain what you can do to exploit this situation
What will be an ideal response?
Answer: You can perform triangular arbitrage and increase your wealth without risk. If the quoted cross rate is below the implied cross rate, you will convert currencies to take advantage of the undervalued exchange rate. If the quoted cross rate is higher than the verified cross rate, you will need to convert currencies to take advantage of this overvalued exchange rate.
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A method of transferring property without tax implications is known as
Which of the following statements is correct regarding the taxes payable under the Federal Unemployment Tax Act (FUTA)?
A. Liability arises only when wages are actually, not constructively, paid to employees. B. Credits for this tax are allowed to employers for certain state unemployment taxes paid by the employer. C. The amount is withheld from the wages of all employees. D. The amount is determined as a percentage of all compensation paid to an employee.