The current exchange rate is pound100 200 compute the


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.

Solution Preview :

Prepared by a verified Expert
Engineering Mathematics: The current exchange rate is pound100 200 compute the
Reference No:- TGS01590028

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)