Consider the Balance Sheets of Bank a and Bank B

question 77

Essay

Consider the balance sheets of Bank A and Bank B.Bank A is in London,Bank B is in New York.The current exchange rate is £1.00 = $2.00.Show the correct balances in each account if a currency trader employed at Bank A buys £50,000 from a currency trader at bank B for $100,000 using its correspondent relationship with Bank B.

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Definitions:

Double-checked

The act of verifying or reviewing something for a second time to ensure accuracy or correctness.

General Rule

A widely applicable guideline or principle that provides a basis for decision-making or behavior in various situations.

Administer

To give a drug directly by injection, by mouth, or by any other route that introduces the drug into the body.

Sublingually

Refers to the method of administering medication under the tongue for absorption into the bloodstream.