Mary can exchange $100 for 57 GBP. Russell can get 58 GBP for $100 if he exchanges his dollars for yen, and then his yen for pounds. Russell is profiting from an activity described as:

Question

Quizplus · Accepted Answer

Russell is profiting from triangle arbitrage, a strategy that involves exchanging currencies in a cycle to exploit differences in exchange rates. By converting his dollars to yen and then yen to pounds, he ends up with more GBP than if he had directly exchanged dollars for pounds, thus taking advantage of discrepancies in currency exchange rates.

Mary Can Exchange $100 for 57 GBP