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    Question

    The difference between the buying and selling rates

    quoted by a dealer is called:
    A Spread Correct Answer Incorrect Answer
    B Margin Correct Answer Incorrect Answer
    C Premium Correct Answer Incorrect Answer
    D Discount Correct Answer Incorrect Answer

    Solution

    Spread is the dealer's profit margin - the difference between the bid (buying) price and ask (selling) price of a currency.

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