For each pair of currencies, such as dollars and pounds, foreign-currency brokers and dealers post two different exchange rates.

Question

Quizplus · Accepted Answer

Foreign-currency brokers and dealers typically post two different exchange rates for each pair of currencies: the buying rate (bid) at which they buy the foreign currency, and the selling rate (ask) at which they sell the currency. This spread allows them to make a profit.

For Each Pair of Currencies, Such as Dollars and Pounds