Foreign Exchange ________ Earn a Profit by a Bid-Ask Spread

question 4

Multiple Choice

Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange ________, on the other hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase.

• A) central banks; treasuries
• B) dealers; brokers
• C) brokers; dealers
• D) speculators; arbitrageurs

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Definitions:

Expense Account

An account that tracks the costs incurred by a business as part of its operating activities.

Enter Bills

Entering bills refers to the process of recording invoices received from vendors or suppliers into an accounting system.

Accounts Payable Aging

Accounts payable aging is a report that categorizes a company's payables to suppliers based on the time frame since the invoices were issued.

Customer Aging

Customer aging, similar to accounts payable aging, categorizes outstanding accounts receivable based on the duration the invoices have been outstanding.