With regard to the international payments process, which of the following statements is true?
A) Most foreign nations will never accept dollars.
B) Banks do not get involved in such transactions.
C) Money does not actually have to flow between the two countries.
D) Diplomatic pouches move currency payments from one nation to another.
E) All of these statements are true.

Question

Quizplus · Accepted Answer

Money does not actually have to physically flow between the two countries in the international payments process. Instead, banks typically use correspondent banking relationships to facilitate the transfer of funds electronically. The other statements are false. Most foreign nations do accept dollars, banks play a critical role in international payments, and currency payments are not typically moved by diplomatic pouches.

With Regard to the International Payments Process, Which of the Following