CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

Regarding the size of the bid-ask spread quoted to dealers' clients, which statement is FALSE?

A. Geopolitical events such as war may impact the size of bid-ask spread.
B. Credit risk of clients' is one of the most important factors considered by dealers.
C. It is generally wider than the bid-ask spread in the interbank market.
Correct Answer: B

This is due to the nature of short settlement cycle for spot FX transactions.

User Contributed Comments 2

User Comment
PJMOHAN What about C?
PJMOHAN Sorry clarified. C is true!!
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