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:

A Task

A specific objective or piece of work to be done, usually defined by a set of requirements or goals.

Self-Care

The practice of taking action to preserve or improve one's own health, well-being, and happiness, particularly during periods of stress.

Goal Setting

The process of identifying something that you want to accomplish and establishing measurable objectives and timeframes.

Time Management

The practice of organizing and planning how to divide one's time between specific activities to effectively achieve goals.