- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Currency Exchange Rates: Understanding Equilibrium Value
- Subject 1. Foreign Exchange Spot Markets
CFA Practice Question
Other things being equal, which currency pair should have the tightest bid-ask spread? USD: U.S. dollar. MXN: Mexican Peso. CHF: Swiss Franc. AUD: Australian Dollar. EUR: Euro.
B. USD/EUR.
C. EUR/AUD.
A. MXN/CHF.
B. USD/EUR.
C. EUR/AUD.
Correct Answer: B
The pair is the most liquid on among the three.
User Contributed Comments 1
| User | Comment |
|---|---|
| jejemike | a currency pair whose component are actively traded will have the smallest spread |