In the interbank market for foreign exchange, the ____ refers to the price that a bank is willing to pay for a unit of foreign currency.
A) offer rate
B) bid rate
C) spread rate
D) transaction rate

Question

Quizplus · Accepted Answer

The bid rate is the price that a bank is willing to pay for a unit of foreign currency in the interbank market for foreign exchange. The offer rate is the price at which a bank is willing to sell a unit of foreign currency. The spread rate is the difference between the bid and offer rates. There is no such thing as a transaction rate in this context.

In the Interbank Market for Foreign Exchange, the ____ Refers