ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Assume that a bank’s bid rate on Swiss francs is $0.45 and its ask rate is $0.47. Its bid‑ask percentage spread is:
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about 4.44%.
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about 4.26%.
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about 4.03%.
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about 4.17%.
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Explanation:
Detailed explanation-1: -The forward exchange rate (also referred to as forward rate or forward price) is the exchange rate at which a bank agrees to exchange one currency for another at a future date when it enters into a forward contract with an investor.
Detailed explanation-2: -Bank. You can buy Swiss francs with dollars at major banks like Wells Fargo and Bank of America. You will need to be a bank customer already and can order it online easily. Foreign Currency Exchange. Money changers can be a cheap way to buy francs. Airport. Yes, you can buy currency at the airport.
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