The Current Exchange Rate Is £1

question 81

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 rise by $90,000.
• B)Bank B's dollar-denominated account at A will fall 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 rise by £45,000.

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Definitions:

Filed Annually

Describes documents, forms, or reports that are required to be submitted once every year.

Wage and Tax Statement

A document, often referred to as a W-2 form in the United States, that an employer provides to employees annually for tax filing purposes.

FUTA Taxes

Federal unemployment taxes levied on employers to fund state workforce agencies and unemployment insurance for workers who have lost their jobs.