Question

Why is the offer always higher than the bid in Foreign Exchange?

a.

To attract more buyers

b.

To attract more sellers

c.

To make money by buying at the bid and selling at the offer

d.

It is a convention in foreign exchange markets

Posted under IC 89 Management Accounting

Answer: (c).To make money by buying at the bid and selling at the offer Explanation:The offer is always higher than the bid as inter-bank dealers make money by buying at the bid and selling at the offer.

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