A Bank Exchanging Foreign Currency Makes Its Profit in What

question 41

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 buying and selling rates

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Definitions:

Anesthesia

A medical procedure used to temporarily block sensation in the body, typically to prevent pain during surgeries or medical interventions.

Circumcisions

The surgical removal of the foreskin from the male genitalia, often performed for religious, cultural, or medical reasons.

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Activities that use large muscle groups in the arms, legs, and torso to promote movement and coordination.

Preschool Child

A child who has not yet commenced formal schooling, typically aged between 3 to 5 years.