CFA Practice Question

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CFA Practice Question

Currency quotations are given in pairs. The first number in the pair is the ______ and the second is the ______.

A. ask rate; bid rate
B. spot rate; forward rate
C. bid rate; ask rate
Correct Answer: C

Quotes are given in pairs because customers could be either buyers or sellers. The first number is also known as the buy rate and the second number is also known as the sell rate.

User Contributed Comments 1

User Comment
ankurwa10 One can remember it as buyers & sellers; therefore bid:ask
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