- 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 ______ is the price at which a currency dealer is willing to sell a currency.
B. offer or bid price
C. offer or ask price
A. ask or bid price
B. offer or bid price
C. offer or ask price
Correct Answer: C
The ask or offer price is the exchange rate at which a dealer is willing to sell a currency.
User Contributed Comments 4
| User | Comment |
|---|---|
| Inaganti6 | hypocrisy is the nature of free enterprise ... to sell something more than you buy the cost of produce for .. |
| kseeba17 | lol ^ OK Karl |
| davidt876 | not if the cost of producing the currency for you to buy/sell includes registering a company, dealing with the necessary regulatory costs of trading currencies, paying traders and overheads, and paying the custodians of the financial instruments/cash or spending money to do it yourself. then the spread is justified. then free enterprise is working ignanti. also the use of the spread over a fixed transaction fee means their commission naturally adjusts to market demand to give you a competitively fair price down to the very moment (tick) when you push a button and trade a currency. the FX markets has a few problems but exemplifying the hypocrisy of free enterprise is not one of them. |
| CFAJ | the next marxist revolution has begun, here in the comments section of the fabled "analystnotes" |