The Current Exchange Rate Is £1

question 30

Multiple Choice

The current exchange rate is £1.00 = $2.00.Compute the correct balances in Bank A's correspondent account(s) 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 fall by $90,000.
• B)Bank B's dollar-denominated account at A will rise by $90,000.
• C)Bank A's pound-denominated account at B will rise by £45,000.
• D)Bank B's pound-denominated account at A will fall by £45,000.
• E)all of the options

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Definitions:

Substituted Cyclohexane

A cyclohexane molecule in which one or more of the hydrogen atoms have been replaced by another atom or group of atoms, affecting its chemical and physical properties.

Bromine

A halogen element symbolized by Br, known for its reddish-brown color and usage in various chemical reactions as a brominating agent.

Elimination Product

A compound resulting from the removal of elements of a smaller molecule from a larger molecule, typically water from an alcohol to form an alkene.

Organic Product

A molecule or compound that consists of carbon atoms bonded together, excluding carbides, carbonates, and cyanides, often produced through organic reactions.