The more intense the competition, the …………the spread quoted by intermediaries Multiple Choice larger same smaller

Finance Dec 25, 2020

The more intense the competition, the …………the spread quoted by intermediaries

Multiple Choice

larger
same
smaller

Expert Solution

The correct option is smaller.

The spread here is for the foreign exchange. So the spread is the difference between buying and selling a currency. When competition is high and there are several players in the market, everyone will want to attract customers and will lower the spread. so the spread will be less.

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