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Basic Question 9 of 19
Regarding the size of the bid-ask spread quoted to dealers' clients, which statement is FALSE?
B. Credit risk of clients' is one of the most important factors considered by dealers.
C. It is generally wider than the bid-ask spread in the interbank market.
A. Geopolitical events such as war may impact the size of bid-ask spread.
B. Credit risk of clients' is one of the most important factors considered by dealers.
C. It is generally wider than the bid-ask spread in the interbank market.
User Contributed Comments 2
| User | Comment |
|---|---|
| PJMOHAN | What about C? |
| PJMOHAN | Sorry clarified. C is true!! |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
calculate and interpret the bid-ask spread on a spot or forward foreign currency quotation and describe the factors that affect the bid-offer spread;
identify a triangular arbitrage opportunity and calculate its profit, given the bid-offer quotations for three currencies;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.