The primary participants of the foreign exchange market are large international banks. How do these banks make

Fantastic news! We've Found the answer you've been seeking!

Question:

The primary participants of the foreign exchange market are large international banks. How do these banks make money by trading money?

a. They make money by capturing the difference between their bid rate and offer rate.

b. They make money by capturing the difference between their offer rate and bid rate.

c. They make money by using a foreign exchange transaction called a currency swap.

d. They make money by capturing the spot rate.

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

See More Books

Posted Date: Dec 28, 2023 03:57 AM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
The mass-to-charge ratio for the positive ion F+ is 1.97 107 kg/C. Using the value of 1.602 1019 C for the charge on the ion, calculate the mass of the fluorine atom. (The mass of the electron is...
Analyze the accounting equation effects of the transactions in M2-15 using the format shown in the chapter, and compute total assets, total liabilities, and total shareholders' equity. In M2-15 Joel...
The following selected data were taken from the financial statements of The OMalley Group Inc. for December 31, 20Y5, 20Y4, and 20Y3: No dividends on common stock were declared between 20Y3 and 20Y5....
Find an example of a spaghetti plot and click on the image. You can answer the following questions using either the default variables and cases, or else use the menu on the left to select variables...
Determining and Interpreting the Effects of Transactions on Income Statement Categories and Return on Assets Avon Products, Inc., is a leading manufacturer and marketer of beauty products and related...
Assume that P = Tshs 1 0 0 , 0 0 0 , i = 1 2 % , and n = 3 years. Find FV when interest is compounded: ( a ) annually
Using a linear programming framework and the data from case Exhibit 1, formulate and solve the problem of finding the cost-minimizing set of bids that meet Mars' business requirements and determines...
3. Find the arc length of the curves x = e -2 (sin+cos), y=e -2 (sin-cos) over the interval 0 1.
A political candidate has hired a polling firm to assess her chances of winning a senatorial election in a large eastern state. She wants an estimate of the proportion of registered voters that would...
The yield per acre of a certain dwarf watermelon is highly dependent on the amount of rainfall that occurs during the growing season. Following standard cultivation practices, the relationship...
Let \(Y\) have a chi-square distribution with 15 degrees of freedom, let \(X\) have a chi-square distribution with 5 degrees of freedom, and let \(Y=X+Z\), where \(X\) and \(Z\) are independent...
A large aircraft manufacturer produces a passenger jet having a navigation component consisting of three sequentially functioning redundant navigation systems that will allow the jet to be properly...
Define MOM estimators in each of the following cases. Are estimators consistent? Are they asymptotically normal? (a) Estimating \(\mu\) and \(\sigma^{2}\) based on a random sample from a normal...
How workplace harassment affects equal employment opportunity and describe at least four elements a plaintiff must show to pursue a harassment claim. How might an organization prevent the risk of...
In muscle tissue, the ratio of phosphorylase a to phosphorylase b determines the rate of conversion of glycogen to glucose 1phosphate. Classify how each event affects the rate of glycogen breakdown...
Goodwill is an intangible asset that firms report on their balance sheets as a result of acquiring other firms. Goodwill generally has an indefinite life and should not be amortized, but should be...
Conceptually, why should an analyst expect valuation based on dividends and valuation based on the free cash flows for common equity shareholders to yield identical value estimates?
Sanders Company is a technology consultancy firm. Sanders disclosures in a recent Form 10-K filing provided an extensive discussion of its revenue recognition policies, excerpts of which follow: We...
Input the IRS Schedules C from the 20132015 income tax returns into a spreadsheet. a. Add percent columns to the right of dollar column for each year. b. Calculate common-sized percentages in the...
Because you did not observe the inventory, which was destroyed in the fire, estimate ending inventory using the 2013 and 2014 dollars and percentages. a. Because you did not observe the inventory,...
How does the estimated ending inventory impact the individual income tax return ending inventory, cost of goods sold, net profit, and net income? Find out by adding an additional column for 2015 and...

The primary participants of the foreign exchange market are large international banks. How do these banks make

Question:

Expert Answer:

The detailed answer for the above question is provided below Answer I The correct option ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

Students also viewed these finance questions