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Identify the one true statement about spot exchange rates

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Reference no: EM132915622

Problem 1: Identify the one true statement about spot exchange rates:

(a) As a bank customer, the bid quote is normally larger than the ask quote

(b) We define exchange rates as foreign currency (FC), against home currency (HC), that is FC/HC

(c) The liquidity of currencies in the spot market depends on maturity

(d) Market maker banks must provide a two-way (bid/ask) quote, even without knowing counterparty's intention

(e) None of the above

Reference no: EM132915622

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