Question: QUESTION 5 0.6 point: Assume the current exchange rate is 1.00 - $1.20. Compute the correct balances in Bank As correspondent account(s) with Bank B

 QUESTION 5 0.6 point: Assume the current exchange rate is 1.00

QUESTION 5 0.6 point: Assume the current exchange rate is 1.00 - $1.20. Compute the correct balances in Bank As correspondent account(s) with Bank B if a currency trader employed at Bank A buys 50,000 from a currency trader at Bank B for $60,000 using its correspondent relationship with Bank B. A. Bank A's dollar-denominated account at B will fall by $60,000. OB Bank B's dollar-denominated account at A will rise by $60,000. C. Bank A's pound-denominated account at B will rise by 50,000. OD. Bank B's pound-denominated account at A will fall by 50,000. E all of the options in the question are correct

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