Where a foreign exchange dealer is willing to exchange one currency for another,the price that should be used in measuring fair value is:
A)the bid price.
B)the ask price.
C)the bid-ask spread.
D)the most representative price for the transaction.

Question

Quizplus · Accepted Answer

The most representative price for the transaction is used to measure fair value, as it reflects the most accurate market value for the currency exchange.

Where a Foreign Exchange Dealer Is Willing to Exchange One