Question: 21) The current exchange rate is 1.00 = $2.00. Compute the correct balances in Bank A's correspondent account() with Bank B if a currency trader
21) The current exchange rate is 1.00 = $2.00. Compute the correct balances in Bank A's correspondent account() with Bank B if a currency trader employed at Bank A buys 45,000 from a currency trader at Bank B for $90,000 using its correspondent relationship with Bank B. A) Bank A's dollar-denominated account at B will rise by $90,000. B) Bank B's dollar-denominated account at A will fall by $90,000 C) Bank B's pound-denominateda D) Bank A's pound-denominated account at B will rise by 45,000. 22) The spot market A) involves the almost-immediate purchase or sale of foreign exchange. B) takes place only on the floor of a physical exchange. C) involves the sale of futures, forwards, and options on foreign exchange. D) all of the options
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