### What should logically happen to the spot exchange rates

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##### Reference no: EM132049646

Assume the following information for a bank quoting on spot exchange rates: Exchange rate of Singapore dollar in USD = 0.32 USD/SGD Exchange rate of pound in USD = 1.50 USD/GBP Exchange rate of pound in Singapore dollars = 4.50 SGD/GBP Based on the information given, as you and others perform triangular arbitrage, what should logically happen to the spot exchange rates?

Choose all that apply.

USD/SGD goes up

USD/SGD goes down

USD/GBP goes up

USD/GBP goes down

SGD/GBP goes up

SGD/GBP goes down

OMG/LOL goes sideways

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