Tutorial 4 Flashcards by John MacRae | Brainscape

Q

Bid rate

A

The rate a bank is willing to buy a currency at

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Ask rate

A

The rate a bank is willing to sell a currency at

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

CHF1.3990–1.4000/USD

A

Bid rate of CHF1.3990/$( bank will give you 1.3990CHF per dollar
Ask rate of 1.4000/$ (bank will give you 1$ per 1.4CHF)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Expected exchange rate (x)

A

(X - spot rate) / spot rate = rate of depression/inflation

How well did you know this?

1

Not at all

2

3

4

5

Perfectly