Buying and selling in more than one market to make a riskless profit is called [blank].

Question

Quizplus · Accepted Answer

This practice is commonly referred to as "arbitrage," as it involves exploiting price discrepancies between markets to earn a riskless profit. Option A is not the correct answer as profit maximization refers to maximizing profits within a single market, whereas arbitrage involves exploiting differences between multiple markets. Option C is partially correct, but not specific enough as there are many forms of international trading that do not involve arbitrage. Option D is incorrect as the information provided is sufficient to make a clear choice.

Buying and Selling in More Than One Market to Make