The price at which a bank is willing to buy a currency is known as the ____________.

The price at which a bank is willing to buy a currency is known as the bid rate. In the foreign exchange market, the bid rate is the rate at which a trader or financial institution will purchase a currency from a seller. This reflects the demand for that currency and is a crucial aspect of currency trading, as it determines how much a trader can expect to receive when selling a currency. The bid rate is always lower than the offer rate, which is the price at which the bank sells the currency, creating a spread between the two rates. Understanding the bid rate is essential for anyone involved in international business or trading, as it impacts currency conversion and can influence financial decisions.