The Way That Fedwire Works Is That

question 44

Multiple Choice

The way that Fedwire works is that:

• A)the required reserves of banks held in the Federal Reserve System are debited and credited each day to reflect those banks' foreign exchange transactions.
• B)at the end of each day,Fedwire sends a bill or a payment to each bank that represents that bank's net foreign exchange activity for that day.
• C)Fedwire is simply an electronic messaging system that allows banks to communicate with each other concerning foreign exchange transactions.
• D)Fedwire facilitates government approval of all foreign exchange transactions conducted by U.S.entities.