You need to buy USD 5,000,000 against GBP and are quoted the following rates concurrently by two separate banks: 1.6045-50 and 1.6047-52. At which rate do you trade?
A) 1.6045
B) 1.6047
C) 1.6050
D) 1.6052

Question

Quizplus · Accepted Answer

In this scenario, you want to buy USD, which means you need to sell GBP. The best rate to sell GBP would be the highest bid rate, which is 1.6047. Therefore, you should trade at a rate of 1.6047.

You Need to Buy USD 5,000,000 Against GBP and Are