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Corporate Strategy MCQs

What is meant by the practice of 'triangulation' in relation to currency trading?

Hedging by converting one currency into two different ones rather than just a simple one-to-one exchange.

Trading between three currencies to exploit situations where relative values do not change proportionally.

Minimizing risk by never trading more than a third of the capital available at a time.

Always seeking external corroboration of factors that may cause currency fluctuation.

Answer

Correct Answer: Trading between three currencies to exploit situations where relative values do not change proportionally.

Explanation:

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