The Size of the Spread That a Dealer Will Quote

question 25

Multiple Choice

The size of the spread that a dealer will quote for a foreign exchange transaction will vary depending on

• A)the degree of market volatility at the time.
• B)the degree of risk associated with a particular currency.
• C)the size of the market for the currency being traded.
• D)All of above.

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Definitions:

Secondary Appraisal

The process of evaluating one's options and determining how to cope with a potential stressor after initially appraising its potential threat.

General Arousal

A physiological and psychological state of being awake or reactive to stimuli, encompassing both physical and emotional components.

Background Emotions

The underlying, often unconscious emotional states that influence individuals' perceptions and behaviors.

Primary Emotions

Basic emotions that are hard-wired into the human brain, universally experienced and recognized across cultures, such as joy, anger, fear, and sadness.