- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 7. Capital Flows and the FX Market
- Subject 1. The Foreign Exchange Market
CFA Practice Question
The ______ between the bid and ask prices is ______.
B. points; dependent on the currency traded
C. difference; fixed by the country market for currency exchange
A. spread; a form of remuneration for the dealer
B. points; dependent on the currency traded
C. difference; fixed by the country market for currency exchange
Correct Answer: A
The spread, the difference between the bid and ask price for currencies, is a form of remuneration for the dealer who makes a firm quotation without knowing whether the customer wants to buy or sell.
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