Info
Warning
Danger
/ Homework Answers / Business Management / 71) The bid the price at which the trader willing

Question

 

71) The bid is the price at which the trader is willing to sell foreign currency.

72) In the spot market, the spread is the difference between the bid and offer rates and is the trader's profit margin.

73) If the forward rate for a foreign currency is less than the spot rate, the foreign currency is selling at a forward premium.

74) A currency sells at a forward premium when the forward rate is greater than the spot rate.

75) Options are more flexible than forward contracts.

76) An offer is the right but not the obligation to buy or sell foreign currency.

77) Commercial banks look at foreign-exchange trading as a service extended primarily to important customers, not as a major business activity of its own.

78) Although most foreign exchange activity takes place through big money center banks, the use of electronic trading has allowed even regional banks to deal directly in foreign exchange markets.

79) One reason that companies use the foreign exchange market is to diversify their expenses from other sources.

80) Companies use the foreign exchange market to convert money for use in financial transactions.

 

 

Solution
5 (1 Ratings )

Solved
Business Management 7 Months Ago 3 Views
This Question has Been Answered!
Premium Content -

Unlimited Access

Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Better Grades!

Ask an Expert

Our Experts can answer your tough homework and study questions
16143 Business Management Questions Answered!
Post a Question

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Thank You For Registering

Please Vreify Your Email Address

Resend Link
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (15882 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!