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Consider the following bid-ask spot rates: USD1.511 - 23/GBP. Which of the following statements is correct? a. The reciprocal of the spot bid rate is

Consider the following bid-ask spot rates: USD1.511 - 23/GBP. Which of the following statements is correct?

a. The reciprocal of the spot bid rate is the price at which the private individual buys USD. b. The spot bid rate is the price at which the private individual sells USD. c. The bid-ask spread as a percentage of the ask rate is 0.71%.

d. Ifthe spread were to decrease, then this indicates a higher degree of market consensus on the true value of the USD but not the GBP.

e. More than one of the options in this question are correct.

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