Foreign exchange dealers quote _________ at which they are prepared to deal in foreign currency.
A) ask prices
B) two-way prices
C) bid prices
D) margin prices

Question

Quizplus · Accepted Answer

Foreign exchange dealers quote two-way prices, which include both the bid price (the price at which they are prepared to buy foreign currency) and the ask price (the price at which they are prepared to sell foreign currency). The difference between the two prices is known as the spread, and this represents the dealer's profit margin. Margin prices and ask prices are not accurate descriptions of how foreign exchange dealers quote prices.

Foreign Exchange Dealers Quote _________ at Which They Are Prepared