A Foreign Exchange Dealer in New York Posts an Ask

question 101

Multiple Choice

A foreign exchange dealer in New York posts an ask price of .02201 for Indian rupees and a bid price of .02197.What is the dealer's profit on the simultaneous purchase and sale of 1 million rupees?

• A)$40 profit
• B)($40 )loss
• C)$400 profit
• D)($4)loss

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Definitions:

Thrift Institution

A financial organization that primarily accepts savings deposits and provides mortgage and loan services.

Commercial Bank

A financial institution that provides various services, including accepting deposits, lending money, and offering investment products to individuals and businesses.

Savings and Loan

A type of financial institution that specializes in accepting savings deposits and making mortgage and other loans.

Depository Institutions

Depository institutions are financial organizations, such as banks and credit unions, that accept deposits from individuals and provide loans.