In Economics buying an asset in one market and simultaneously selling an identical asset in another ...........

General Studies (CHSL) Indian Economy

In Economics, buying an asset in one market and simultaneously selling an identical asset in another market at a higher price is termed as ________.

Depreciation

Devaluation

Arbitrage

Mortgage

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Explanation:

Arbitrage occurs when a security is purchased in one market and simultaneously sold in another market at a higher price, thus considered to be risk-free profit for the trader. Arbitrage provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time.