Arbitrage is the process by which:
A)a good is purchased for a low price in one market and sold for a higher price in another market
B)a good is purchased for a high price in one market and sold for a lower price in another market
C)a good is purchased for a low price in one market and sold for the same price in the same market
D)a good is purchased for a high price in one market and sold for the same price in the same market

Question

Quizplus · Accepted Answer

Arbitrage involves taking advantage of price differences between different markets. By purchasing a good at a low price in one market and selling it for a higher price in another market, an arbitrageur can make a profit. Option B is the opposite of arbitrage and would result in a loss. Options C and D involve selling a good for the same price it was purchased, which would not result in a profit.

Arbitrage Is the Process by Which