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(solution) Do you think that because of the costs of moving banknotes back


Do you think that because of the costs of moving banknotes back to their country of circulation, buying foreign currency banknotes could sometimes be cheaper than buying bank drafts? Could there be a seasonal pattern in exchange rates for banknotes?What steps are involved in settling a purchase made in Britain with a credit card issued by a US bank? Why do you think the spread between buy and sell rates used in credit card payments is smaller than those applying to foreign banknotes?Does the use of US dollars as the principal currency of quotation put US banks at an advantage for making profits? What might lead to a change in the role of the US dollar as the leading international currency?Why do you think that banks give bid and ask rates when dealing with each other? Why don?t they state their intentions as they do when dealing with foreign exchange brokers?

 


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