Balances in foreign accounts are maintained for purposes of dealing in foreign exchange by:

Question

Quizplus · Accepted Answer

Balances in foreign accounts are typically maintained by correspondents or foreign branches of domestic banks for the purpose of facilitating foreign exchange transactions. Central banks may also maintain foreign accounts for various purposes, but this is not the primary reason for such accounts. Multinational corporations may hold foreign accounts for a variety of reasons, but not necessarily for dealing in foreign exchange.

Balances in Foreign Accounts Are Maintained for Purposes of Dealing