If Balances in a Bank's Foreign Accounts Are Substantially Reduced

question 53

Multiple Choice

If balances in a bank's foreign accounts are substantially reduced due to an excess of demand relative to supply:

• A)loans are usually sought from central banks and other institutions to replenish balances
• B)they will buy currency from foreign exchange dealers price quotations are adjusted to affect a reduction in demand and an increase in supply
• C)currency may be shipped abroad for deposit in such accounts
• D)Export-Import Bank loans are sought to bolster balances

---

Definitions:

Unsmiling

Displaying a serious or stern expression, without smiles.

Cheerful

Exhibiting a disposition that is full of joy and optimism.

Reflexive Smiling

An involuntary smile, often occurring in infants, that does not necessarily express happiness or response to social interactions.

Social

Relating to society or its organization; includes social interactions, structure, and function within human groups.