1. As long as the interest rate is positive, the future value will always be larger than the present value given any period of time.
a) True b) False
2. In a triangular arbitrage transaction:
a) only the overpriced currency is sold and the underpriced currency is bought, no other currency traded
b) all three currencies are bought and sold
c) there is high risk and high return d) the arbitrage transactions can be executed over two days to save transaction costs
e) all of the above
f) b and c only
g) a and c only
h) b,c, and d