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 at which a bank is willing to buy a unit of foreign currency in the interbank market. 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, and the transaction rate is the rate at which a specific foreign exchange transaction is executed.

In the Interbank Market for Foreign Exchange,the ____ Refers to the Price