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    Question

    In the forex market, the 'bid rate' refers

    to:
    A The rate at which the bank buys a currency Correct Answer Incorrect Answer
    B The rate at which the bank sells a currency Correct Answer Incorrect Answer
    C The average of buying and selling rates Correct Answer Incorrect Answer
    D The rate set by the central bank Correct Answer Incorrect Answer

    Solution

    The bid rate is the price at which a dealer (like a bank) is willing to buy a currency. The ask (or offer) rate is the price at which they are willing to sell it.

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