You are a dealer. Looking at your Bloomberg terminal, you find the following quotes: EUR/USD = 1.1251 53 CHF/USD = 1.4125 28 Which Forex rate allows you to extract the lowest %spread?

A) the EUR/USD

B) the CHF/USD

C) the USD/CHF

D) It cannot be inferred.

A low bid-ask spread is good news for retail investors, as it indicates low _______. Conversely, a low bid-ask spread is bad news for dealers, as it indicated low _______.

A) transaction costs; liquidity

B) liquidity; profit margins

C) profit margins ; liquidity

D) transaction costs ; profit margins.