In order to give a price in EUR/USD, the broker must:
A) know whether the European Central Bank or the Federal Reserve is in the market before quoting
B) be sure that the quoting bank's prices are not shared with other brokers
C) get the price from a bank or a bid and an offer from different banks in order to make a two-way price, because the broker cannot make prices on his own
D) make sure that the quoting banks have sufficient credit lines

Question

Quizplus · Accepted Answer

In order to give a price in EUR/USD, the broker must get the price from a bank or a bid and an offer from different banks in order to make a two-way price, because the broker cannot make prices on his own. This is because the foreign exchange market is decentralized, and pricing is determined by the supply and demand of different banks and market participants. Therefore, the broker must rely on external sources to provide accurate pricing information. Choices A, B, and D are not relevant to the process of quoting a price in EUR/USD.

In Order to Give a Price in EUR/USD, the Broker