CFA Practice Question

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CFA Practice Question

The ______ is the price at which a currency dealer is willing to sell a currency.

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"
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