BANKING AFFAIRS

Detailed explanation-1: -In the foreign exchange market the bid rate is the rate at which the quoting bank is willing to buy the commodity currency. The offer rate is the rate at which the quoting bank is willing to sell the commodity currency.

Detailed explanation-2: -The bid price is what the dealer is willing to pay for a currency, while the ask price is the rate at which a dealer will sell the same currency.

Detailed explanation-3: -A buy rate is the interest rate that a potential lender quotes to your dealer when you apply for dealer-arranged financing. Your dealer may offer you an interest rate that is higher than the buy rate.

Detailed explanation-4: -The term “bid” refers to the highest price a buyer will pay to buy a specified number of shares of a stock at any given time. The term ask refers to the lowest price at which a seller will sell the stock. The bid price will almost always be lower than the ask or “offer, ” price.

Detailed explanation-5: -61.50 and the selling rate is Rs. 61.52.. The buying rate is known as the ‘Bid’ rate and the selling rate as the ‘Offer’ rate.