Why are the bid—ask spreads quoted in the interbank spot market? What is their purpose?
What will be an ideal response?
Answer: The purpose of the bid-ask spread is to allow traders to profit by buying a currency at a low bid price and selling that currency at a higher ask price. Bid—ask spreads in the spot foreign exchange market are quite small, often a difference of only two or three basis points. A yen—dollar trader might quote a bid price of yen per dollar at which she is willing to buy dollars in exchange for yen of, say, ¥104.30/$. The trader would then quote a higher ask price at which she is willing to sell dollars for yen, say, at an exchange rate of ¥104.35/$.
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Consider the following production function Y = A×Ka×L1?a. ? If a = 0.4, and over the past year output grew 4 percent, total factor productivity (TFP) grew 2.6 percent, and capital grew 2 percent, what was the growth rate of labor?
A. 4 percent B. 3 percent C. 2 percent D. 1 percent
Advantages of using computer-assisted personal interviewing to collect research data include good response rates and low potential for interviewer bias
Indicate whether the statement is true or false
Which of the following is NOT a common characteristic of product quality?
a. features b. durability c. empathy d. performance
The Four Habits Model described in Case 2 served as ______.
A. the foundation for a diverse array of KP programs B. a new personnel model involving psychology C. f our approaches to scientific research D. none of these