Mo. Jeanette Johnson is going to Saudi Arabia next week for Spring break. She inquires about the rate of exchange between the US dollar and the Riyal (the currency of Saudi Arabia). She is then informed by a teller at Bank of America in San Francisco that the bank’s current bid rate is R/$ = 3.7505, while their offer rate is R/$ = 4.0000. Coincidentally, she meets Al Freddy, a friend of hers, who just arrived from Saudi Arabia and who would like to convert his Riyals into dollars at the same Bank. Which of these two rates from Bank of America is applicable to Jeanette Johnson? [Remember: Jeanette who is going to Saudi Arabia has dollars that she wants to exchange against Riyals]. A. bid rate. B. offer rate. C. both the bid and offer rates D. neither the bid nor the offer rate.
Mo.
Jeanette Johnson is going to Saudi Arabia next week for Spring break. She inquires about the rate of exchange between the US dollar and the Riyal (the currency of Saudi Arabia). She is then informed by a teller at Bank of America in San Francisco that the bank’s current bid rate is R/$ = 3.7505, while their offer rate is R/$ = 4.0000. Coincidentally, she meets Al Freddy, a friend of hers, who just arrived from Saudi Arabia and who would like to convert his Riyals into dollars at the same Bank.
Which of these two rates from Bank of America is applicable to Jeanette Johnson? [Remember: Jeanette who is going to Saudi Arabia has dollars that she wants to exchange against Riyals].
A. bid rate.
B. offer rate.
C. both the bid and offer rates
D. neither the bid nor the offer rate.
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