20) A bid is the price in one currency at which a dealer will buy another currency. An ask is the price at which a dealer will sell the other currency. Dealers bid (buy) at one price and ask (sell) ata slightly higher price, making their profit from the spread between the prices. List and explain three reasons/factors that could make the spread small.
Diff: 2L.O.: 5.5 Foreign Exchange Rates and QuotationsSkill: ConceptualAACSB: Application of knowledge20