The price at which a market maker is prepared to buy a currency or borrow money is termed as
A. spot rate
B. bid rate
C. ask price
D. forward rate
Answer: Option B
Solution(By Examveda Team)
The price at which a market maker is prepared to buy a currency or borrow money is termed as bid rate. The bid rate is thus the rate at which the dealer is willing to buy the base currency and the ask rate is the one at which the dealer is willing to sell the base currency. The difference between the ask rate and the bid rate is called the bid-ask spread and is the profit of the dealer.Related Questions on International Finance and Treasury
A. The British Pound
B. The Japanese Yen
C. The Spanish Peso
D. The US Dollar
Not a profit maximizing business is
A. International Monetary Fund
B. International bank for Reconstruction and Development
C. International Financial Corporation
D. World Trade Organisation
A. Merchandise Payment
B. Service Payment
C. Factory Income
D. Transfer payment
Nations that have major economic expansion attract
A. Imports
B. Direct Foreign Investment
C. Exports
D. Privatization
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