CFA Practice Question

There are 341 practice questions for this study session.

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"
You need to log in first to add your comment.