Bid-ask spread in foreign exchange market is the

A. price of currency in foreign exchange market

B. difference between bid and ask quotes for a currency

C. price at which a bank will buy a currency

D. price a bank will pay for a currency

Answer: Option B

Solution(By Examveda Team)

Bid-ask spread in foreign exchange market is the difference between bid and ask quotes for a currency. A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market. The bid-ask spread is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept.