Melissa, a Foreign-Exchange Trader, Wants to Buy Euros from Stephanie

question 8

Multiple Choice

Melissa, a foreign-exchange trader, wants to buy euros from Stephanie.Which of the following is the price at which Melissa is willing to buy euros?

• A)spread
• B)offer
• C)bid
• D)cross rate

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Definitions:

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to a taxing authority.

Employers Withhold

The practice of employers deducting a portion of employees' wages or salaries for tax purposes before issuing the net amount to the employee.

Tax Return

The form(s) filed with a taxing authority that reports income, expenses, and other pertinent tax information, used to calculate tax liability.

Tax Liability

The complete sum of tax a person or organization is legally required to pay to a tax-collecting body.