Answer :
Final answer:
In currency bid-ask quotes for JPY/GBP, Mr. Smith buys GBP at the ask price of 240, Mr. Brown sells GBP at the bid price of 220, Mrs. Green buys JPY at 220, and Mrs. Jones sells JPY at 240. The correct option is a. (a) 240, 220, 220, 240.
Explanation:
When presented with bid-ask quotes for currency pairs such as JPY/GBP, we need to understand that the bid price is what the dealer is willing to pay to purchase the base currency (GBP in this case), while the asking price is what the dealer wants to sell the base currency.
In this scenario, we are given the bid-ask quotes for JPY/GBP as 220-240. This means: (a) Mr. Smith will purchase GBP at the ask price of 240. (b) Mr. Brown will sell GBP at the bid price of 220. (c) Mrs. Green will purchase JPY at the bid price of 220. (d) Mrs. Jones will sell JPY at the ask price of 240. It is important for individuals dealing with foreign exchange to understand and correctly interpret these quotes to make informed trading decisions.