If one currency dealer will buy a foreign currency at a higher price than that another currency dealer will sell the same currency (assuming no commission costs exist) a. Covered interest arbitrage profits can be made b. Triangular arbitrage profits can be made c. Locational arbitrage profits can be made d. All of the above are possible e. It is not possible to make arbitrage profits Triangular will be when a. Interest rates in the economies of two traded currencies are higher third country b. Cross rates of exchange between two traded currencies are not exchange rates between each of those two currencies and a third c. Exchange rates do not change through time to maintain Relative Power Parity d. Both (a) and (b) e. None of the above Covered interest arbitrage a. Will always be possible when interest rates in two economic b. Will always be possible when forward contracts are available rate risk c. Will always be possible when the nominal rate of interest interest in any one economy d. Will not be possible if Interest Rate Parity (IRP) holds e. Will only be possible if Triangular arbitrage is not possible The "Carry trade" is: a. Seeking Covered Interest Arbitrage profits b. Seeking to profit from interest rate discrepancies, but c. Seeking to profit from currency value appreciation d. Seeking to profit from discrepancies between foreign e. None of the above In the Balance of Payments equation, imports and exports a a. The Current Account b. The Capital Account c. The Reserve Account d. The Statistical Discrepancy e. All of the above