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.

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DWhen Bank A buys £45,000 from Bank B for $90,000, Bank A's pound-denominated account at Bank B increases by £45,000 because it now holds more pounds. Similarly, Bank B's pound-denominated account at Bank A increases by £45,000 because it has effectively transferred those pounds to Bank A in exchange for dollars. The transactions directly affect the pound-denominated accounts, not the dollar-denominated ones, in the way described.

The Current Exchange Rate Is £1