Which of the following describes the purchasing of a good or asset in one market for immediate resale in another market in order to profit from a price discrepancy?

Question

Quizplus · Accepted Answer

This is the exact definition of arbitrage, which involves buying a good or asset in one market where it is priced lower and selling it in another market where it is priced higher in order to profit from the price discrepancy. Risk adverse refers to a person who is reluctant to take risks, hedging refers to strategies to reduce risk, and uncertainty is a state of not knowing what will happen.

Which of the Following Describes the Purchasing of a Good