Suppose the ING bank, HSBC, bank, and BNP Paribas provide the following quotes for the Russian ruble (RUB):

quotes:

ING EUR/RUB 0.0112-35

HSBC EUR/RUB 0.0098-125

PNB EUR/RUB 0.0096-110

(5) As traders shop around or take advantage of arbitrage opportunities, what would likely happen to the ING's rates? Answer: Choose one of the following answers: A, B, or C A=Bid rate would increase, Ask rate would increase B=B id rate would increase, Ask rate would decrease C= Bid rate would decrease, Ask rate would decrease (6) As traders shop around or take advantage of arbitrage opportunities, what would likely happen to the HSBC's rates? Answer: Choose one of the following answers: A, B, or C A= Bid rate would increase, Ask rate would increase B= Bid rate would increase, Ask rate would decrease C= Bid rate would decrease, Ask rate would decrease (7) As traders shop around or take advantage of arbitrage opportunities, what would likely happen to the PNB's rates? Answer: Choose one of the following answers: A, B, or C A= Bid rate would increase, Ask rate would increase B= Bid rate would increase, Ask rate would decrease C= Bid rate would decrease, Ask rate would decrease