This question-specific review guide is tied to the answer reasoning for a PracticeTestVault item. Use it after you answer the question so the review stays focused on what the prompt actually tested.
What this question is testing
Objective: The bid-ask spread
Prompt focus: If a market maker displays a quote of 25.10 bid and 25.20 ask, the bid-ask spread is:
Why the correct answer works
0.10
Correct. The spread is the ask of 25.20 minus the bid of 25.10, which equals 0.10.
Why the tempting wrong answer fails
The tempting wrong answer usually loses because it skips the key condition, priority, or evidence in the prompt.
Plain-language takeaway
The bid-ask spread is the difference between the ask price and the bid price. Here 25.20 minus 25.10 equals a spread of 0.10.
Simple analogy
Think of the bid-ask spread like following a short checklist: identify the clue, confirm the rule, and then make the move that fits this exact scenario.
How to review it before a retake
- Underline the command word and name what the question is asking before rereading the choices.
- Compare the correct answer against the closest distractor and write the exact detail that separates them.
- Retest this objective with a fresh question without looking at the rationale first.