A Difference Arises Between the Bid and Offer Rates of Foreign

question 36

Multiple Choice

A difference arises between the bid and offer rates of foreign currency because:

• A) the rates are between different dealer banks.
• B) of arbitrage opportunities between currencies.
• C) foreign exchange dealers need to earn income.
• D) it takes time to find buyers or sellers of foreign currency.

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Definitions:

Computers

Electronic devices that execute commands from software to perform a wide range of functions, from basic calculations to complex data processing.

Ordinary Care

The level of care that a reasonably prudent person would exercise in similar circumstances; a standard for negligence determination.

Reasonable Care

The degree of caution and concern an ordinarily prudent person would use in similar circumstances, often used as a standard for determining negligence.

Good Faith

An honest intention to act without taking an unfair advantage over another party.