The exchange rate S(E/E) is 0.7024. A tradér for Bank A, located in New York, bu

Question

The exchange rate S(E/E) is 0.7024. A tradér for Bank A, located in New York, buys $7,324,500 from Bank B, located in London. The balance sheets for the two banks are below. Show how the balance sheets change after the transaction. 4. Bank A New York-US £ deposit at B S deposit at B Other assets Total Assets £123,579.000.00 B'sdeposits $97,472.,950.00 $87,421,876.00 $184,894,827.41 B's S deposits Other L&E; Total L&E; £102,356,873.00 $74,582,149.00 S33.450.000.00 $108.032.150.17 Bank B London-UK S deposit at A f deposit at A£102.356.873.00 Other assets Total Assets £6,520.111.629.721,830.00 Total L&E;£8.521.268.380.206.010.00 $74,582,149.00 A's S deposits A's £ deposits Other L&E; $97,472,950.00 £123.,579,000.00 £108,372,806.38 £145,673.432.00 What is the value of Bank B S deposit in Bank A after the transaction? A. $104,797,450.00 B. $104,815,450.00 C. $67,257,649.00 D. £108,372,806.38 E. $145,673,432.00

Explanation / Answer

Exchange rate S(Pound/Euro) -.7024 is not a useful information as no transaction has been made in Euro

A Bank Deposits in B Bank is $97472950

Add Deposit made $7324500

Total $104797450

Option (a) is correct

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.