Question
 What will be the impact on the Bid-Ask Spread when
liquidity in the forex market increases?Solution
Bid-Ask spread means the amount by which the ask price (what sellers asks for) exceeds the bid price (what buyer wants to pay) for an Asset in market. Ask price is the value point at which the seller is ready to sell and bid price is the point at which a buyer is ready to buy. When the two value points match in a marketplace, i.e. when a buyer and a seller agree to the prices being offered by each other, a trade takes place. These prices are determined by two market forces -- demand and supply, and the gap between these two forces defines the spread between buy-sell prices. Liquidity has an inverse relationship with Bid-Ask spread because when the forex is readily available in the market there will be less difference between highest price buyer willing to pay and lowest price seller willing to accept.
- In each of the questions below, a sentence is given with four words highlighted in bold in the sentence. Among these bold words one may be wrongly spelt. T...
The research highlights the importance of sustainble agricultural practices in combating climate change and ensuring food security for future generatio...
- Select the correctly spelled word.
In each group, one word is correctly spelt. Find the correct word.
- In each of the questions below, a sentence is given with four words highlighted in bold in the sentence. Among these bold words one may be wrongly spelt. T...
The political retoric of foreign aggression is backed up by very brisk policing at home.
...Identify the INCORRECT spelling.
Nothing explains India’s (1)/ job creation challenge (2)/ better than a comparison (3)/ among RIL and Shahi Exports (4)/ No error (5).
Choose the word with correct spelling.
In 2021, his company will launch a vehicel that is capable of servicing two to three dozen satellites in a distant geostationary orbit.