A Bank Exchanging Foreign Currency Makes Its Profit in What

question 51

Multiple Choice

A bank exchanging foreign currency makes its profit in what manner?

• A)on the difference between the spot rate and the foreign rate
• B)A bank is forbidden,by law,to charge a premium in foreign currency exchange.
• C)on the present value of the forward rate discounted to the date an option is purchased
• D)on the difference between the retail rate and the wholesale rate

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Definitions:

Body Response

The physiological reactions or changes in the body as a response to stimuli or conditions.

Stressed

Experiencing mental or emotional strain or tension.

Manage Stress

Techniques and strategies used to control and reduce stress and its effects on one’s physical or mental health.

Response

A reaction to something, such as an answer in a conversation, or the outcome of a stimulus in an experiment.