Question : In the foreign exchange market, the term "bid" refers to:
Option 1: The price at which a currency is sold
Option 2: The price at which a currency is bought
Option 3: The difference between buying and selling prices
Option 4: The rate at which interest is charged on a loan
Correct Answer: The price at which a currency is bought
Solution : The correct answer is b) The price at which a currency is bought
In the foreign exchange market, the "bid" refers to the price at which a trader or market participant is willing to buy a particular currency. It represents the highest price that a buyer is willing to pay for the currency at a given moment. The bid price is typically displayed on the left side of a currency pair quote, with the corresponding "ask" or "offer" price on the right side. The bid and ask prices together create the bid-ask spread, which represents the difference between the buying and selling prices of a currency in the market.
Question : The difference between the buying and selling price of a currency in the foreign exchange market is known as the ________.
Question : What is the term used to describe the difference between the buying and selling prices of a currency in the foreign exchange market?
Question : Open market operations refer to the:
Question : What is the term used to describe the difference between the buying and selling price of a currency in the foreign exchange market?
Question : In a managed exchange rate system, the central bank of a country may intervene to influence the exchange rate by buying or selling its currency in the foreign exchange market. This intervention is aimed at ________.
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