hello sir!
i got confused with the bid and offer rate in section B december 2016 question 16.
usually the bank sells at higher rate which becomes the buy rate for us.
my doubt here is whether the bid rate and buy rate are one and the same.
thanks in advance.
Ask the Tutor ACCA FM
bid and offer rate
7y ago#1The bid rate is the rate the company will use when buying the first mentioned currency (which in this question is dinars). The offer rate is the rate the company will use if selling the first mentioned currency (dinars).
I explain in detail in my free lectures the logic of this, and how to decide which rate to use regardless of what terminology is used.
Thank you for your clear cut explanation sir!
7y ago#3You are welcome :-)
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