CFA Practice Question

There are 253 practice questions for this study session.

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.

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
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