true or false

nbox?proje 2. LARGE COMMERCIAL BANKS SERVE THE MARKET BY HOLDING INVENTORIES OF EACH CURRENCY SO THEY CAN ACCOMMODATE MNCs OR INDIVIDUALS FOR VARIOUS TRANSACTIONS, 3. MNCS DO NOT NEED TO EXCHANGE THEIR LOCAL CURRENCY WHEN THEY MAKE FOREIGN INVESTMENTS. 4. THERE ARE NO DISCREPANCIES IN THE F/X MARKET. 5. IF A DISCREPANCY OCCURS IN QUOTED PRICES, A REALIGNMENT OCCURS AS A RESULT OF ARBITRAGE. 6. DEFINITION OF ARBITRAGE CAN BE LOOSELY DEFINED AS CAPITALIZING ON A DISCREPANCY IN QUOTED PRICES TO MAKE A PROFIT. 7. F/X ARBITRAGE TAKE 3 COMMON FORMS, LOCATIONAL ARBITRAGE, TRIANGULAR ARBITRAGE, AND COVERED INTEREST ARBITRAGE. 8. COMMERCIAL BANKS PROVIDING F/X QUOTES ARE ABOUT THE SAME ON CURRENCIES (MOST OF THE TIME) 9. IF THE DEMAND AND SUPPLY CONDITIONS FOR A PARTICULAR CURRENCY VARY AMONG BANKS, THEN A GIVEN CURRENCY MAY BE PRICED AT DIFFERENT RATES. 10. IN QUESTION 9, MARKET FORCES WILL LEAD TO A REALIGNMENT. 11. QUOTED F/X RATES DO NOT VARY AMONG LOCATIONS. 12. PARTICIPANTS IN F/X MARKET CAN CAPITALIZE ON THE DISCREPANCY 13. THE PROCESS OF BUYING A CURRENCY WHERE IT IS PRICED LOWER AND THEN IMMEDIATELY SELLING IT AT ANOTHER LOCATION WHERE IT IS PRICED HIGHER IS KNOWN AS LOCATIONAL ARBITRAGE. 14. LOCATIONAL ARBITRAGE IS TYPICALLY CONDUCTED BY INDIVIDUALS. I 15. LOCATIONAL ARBITRAGE IS TYPICALLY CONDUCTED BY BANKS OR OTHER F/X DEALERS WHOSE COMPUTERS CAN CONTINUOUSLY MONITOR QUOTES PROVIDED BY OTHER BANKS. 16.THE CONCEPT OF LOCATIONAL ARBITRAGE IS RELEVANT BECAUSE IT EXPLAINS WHY F/X RATE QUOTATIONS AMONG BANKS AT DIFFERENT LOCATIONS WILL SELDOM DIFFER BY A SIGNIFICANT AMOUNT. 17. TRIANGULAR ARBITRAGE DEALS WITH SPOT RATES. 18. CROSS EXCHANGE RATES EXPRESS THE RELATION BETWEEN 2 CURRENCIES, BOTH OF WHICH DIFFER FROM A BASE CURRENCY. IN THE US, THE TERM CROSS EXCHANGE RATE REFERS TO THE RELATIONSHIP BETWEEN 2 NON-DOLLAR CURRENCIES. 19. LIKE LOCATIONAL ARBITRAGE, INDIVIDUALS CAN EXPLOIT CROSS EXCHANGE RATE DISCREPANCIES