If a firm were to ask a dealer for the dollar euro spot or for the euro dollar spot, the firm will receive the same bid and offer quotes.

FOREIGN CURRENCY MARKETS

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

If a firm were to ask a dealer for the ‘dollar euro spot’ or for the ‘euro dollar spot’, the firm will receive the same bid and offer quotes.

A	True
B	False
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -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-2: -Euro to Dollar Exchange Rate Today, Live 1 EUR to USD = 1.0811 (Convert Euros to Dollars)

Detailed explanation-3: -The rate of exchange effective for the spot transaction is known as the spot rate and the market for such transactions is known as the spot market. This requires the immediate delivery or exchange of currencies on the spot i.e. within 48 hours.

Detailed explanation-4: -A spot trade, also known as a spot transaction, refers to the purchase or sale of a foreign currency, financial instrument, or commodity for instant delivery on a specified spot date.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

FOREIGN CURRENCY MARKETS