When an individual or firm in the United States requests that a bank sell foreign exchange,the bank will probably
A)call a foreign bank and arrange a purchase.
B)call the central bank and arrange a purchase.
C)call another bank customer with foreign exchange holdings.
D)call another domestic bank and arrange a purchase.
E)call a foreign exchange broker and arrange a purchase.

Question

Quizplus · Accepted Answer

When a bank is requested to sell foreign exchange, it is likely to contact a foreign exchange broker to arrange a purchase. Foreign exchange brokers are specialized intermediaries who facilitate the exchange of currencies between parties. The other options listed may also be possible, but contacting a foreign exchange broker is the most common practice.

When an Individual or Firm in the United States Requests