The Difference Between Bid and Ask Prices of a Currency,or

question 33

Multiple Choice

The difference between bid and ask prices of a currency,or the fee earned by the bank is called the _____.

• A) exchange rate
• B) bid-ask spread
• C) forward rate
• D) premium
• E) hedge

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Definitions:

Invested Assets

Resources that are obtained with the goal of producing income or profit.

Operating Income

Income generated from the normal business operations of a company, excluding expenses such as interest and taxes.

DuPont Formula

A formula that breaks down Return on Equity (ROE) into three components: profit margin, asset turnover, and financial leverage, to analyze a company's financial performance.

Profit Margin

Profit margin is a financial metric showing the percentage of revenue that remains as profit after all operating expenses are deducted from sales.