When a bank trades foreign currencies, its offer rate will be less than its bid rate.

Name: When a bank trades foreign currencies, its offer rate will be less than its bid rate.
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Question

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In foreign currency trading by banks, the offer (or ask) rate is higher than the bid rate. The bid rate is the price at which the bank is willing to buy the currency, and the offer rate is the price at which the bank is willing to sell the currency.

When a Bank Trades Foreign Currencies, Its Offer Rate Will