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If Balances in a Bank's Foreign Accounts Are Substantially Reduced

Question 63

Multiple Choice

If balances in a bank's foreign accounts are substantially reduced due to an excess of demand relative to supply:


A) loans are usually sought from central banks and other institutions to replenish balances
B) they will buy currency from foreign exchange dealers price quotations are adjusted to affect a reduction in demand and an increase in supply
C) currency may be shipped abroad for deposit in such accounts
D) Export-Import Bank loans are sought to bolster balances

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