The Current Exchange Rate Is £1

question 68

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

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

Erythropoiesis

The process through which new red blood cells are created in the bone marrow, a critical component in maintaining healthy oxygen levels in the blood.

Leukocytes

White blood cells that are part of the immune system, protecting the body against both infectious disease and foreign invaders.

Leucopoiesis

The production of white blood cells, a critical process in the body's immune response.

Hemophilia C

Hemophilia C, also known as Factor XI deficiency, is a mild form of hemophilia causing abnormal bleeding due to a lack of Factor XI.