The Current Exchange Rate Is €1

question 42

Multiple Choice

The current exchange rate is €1.00 = $1.50.Compute the correct balances in Bank A's correspondent account(s) with bank B if a currency trader employed at Bank A buys €100,000 from a currency trader at bank B for $150,000 using its correspondent relationship with Bank B)

• A)Bank A's dollar-denominated account at B will fall by $150,000.
• B)Bank B's dollar-denominated account at A will fall by $150,000.
• C)Bank A's pound-denominated account at B will fall by €100,000.
• D)Bank B's pound-denominated account at A will rise by €100,000.

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Definitions:

Biological Processes

The vital processes occurring in living organisms, necessary for maintaining life, including growth, reproduction, and metabolism.

Neurotransmitters

Neurotransmitters are chemical messengers that transmit signals across a chemical synapse from one nerve cell to another, or to a muscle or gland cell.

Synaptic Vesicles

Membrane-bound sacs in the neuron's terminal bulb that store neurotransmitters ready for release at the synapse.

Presynaptic Membrane

The part of the neuron that faces the synaptic cleft and is responsible for the release of neurotransmitters to signal adjacent neurons.