Question

On your first day at work, your boss tells you to call the bank and get...

On your first day at work, your boss tells you to call the bank and get the bid and the ask for British pounds. Having just returned from studying in London, you know that the exchange rate should be somewhere around 1.25. You call the number and the lady says "579 and 585." What does that mean?

A.

The bid is 0.579 and the ask is 0.585.

B.

She didn't understand your question.

C.

The bid is 1.2579 and the ask is 1.2585.

D.

The ask is 0.579 and the bid is 0.585

Homework Answers

Answer #1

The answer to the question stated above will be option (C) i., "The bid is 1.2579 and the ask is 1.2585."

The quotes in the forex market is stated in terms of BID/ASK. The difference between the Bid and Ask is known as the Bid-Ask Spread. Also, the ask is always greater than the Bid rate. Hence, option (D) is out of context and so is option (B). Out of the remaining 2 ptions, A and C, the option (A) is incorrect because then there will be no use of the rate stated above. Hence, the correct answer is option (C).

Therefore, the correct answer is option (C) i.e., "The bid is 1.2579 and the ask is 1.2585."

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On your first day at work, your boss tells you to call the bank and get...
On your first day at work, your boss tells you to call the bank and get the bid and the ask for British pounds. Having just returned from studying in London, you know that the exchange rate should be somewhere around 1.25. You call the number and the lady says "579 and 585." What does that mean? A. The bid is 0.579 and the ask is 0.585. B. She didn't understand your question. C. The bid is 1.2579 and the...
You start your first day at work as a supervisor in a manufacturing plant. You call...
You start your first day at work as a supervisor in a manufacturing plant. You call your employees together to discuss your vision for the future of the department. You start out by talking about how well trained they are and how proud you are to be working with them, but the last supervisor got fired because your group was under performing. You talk about the importance of motivation and end up discussing the potential end of the year pay...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT