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Answer: for retail transactions compared to interbank transactions.
## Explanation Factors affecting bid-offer spreads in foreign exchange markets: - **Retail vs interbank transactions (Option A)**: Retail transactions typically have **wider** spreads than interbank transactions because: - Retail clients trade smaller amounts - Dealers face higher operational costs per transaction - Less competition at the retail level - Interbank market has higher liquidity and more competition - **Winning repeat business (Option B)**: When dealers want to win repeat business, they typically offer **tighter** spreads to be competitive - **Market certainty (Option C)**: Greater certainty about market factors typically leads to **narrower** spreads as risk decreases Therefore, bid-offer spreads are widest for retail transactions compared to interbank transactions.
Author: LeetQuiz Editorial Team
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The bid-offer spread on the foreign exchange spot market is most likely wider:
A
for retail transactions compared to interbank transactions.
B
when a dealer hopes to win repeat business from the client.
C
when there is greater certainty about factors affecting market pricing.
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