An American tourist is planning to visit Mexico.The exchange rate at which the tourist can buy pesos in a retail bank is the ________.

Question

Quizplus · Accepted Answer

The ask price is the price at which a retail bank is willing to sell pesos to the tourist in exchange for U.S. dollars. It is the most relevant rate for the tourist because it determines how many pesos they will receive for their dollars. The bid price is the price at which the retail bank is willing to buy pesos from the tourist, the flat rate is not a commonly used term in foreign exchange, and the cross rate is a rate between two currencies that are not the tourist's home currency or the currency they wish to exchange into.

An American Tourist Is Planning to Visit Mexico