The Way That Fedwire Works Is That

The way that Fedwire works is that:

A) the required reserves of banks held in the Federal Reserve System are debited and credited each day to reflect those banks' foreign exchange transactions.
B) at the end of each day,Fedwire sends a bill or a payment to each bank that represents that bank's net foreign exchange activity for that day.
C) Fedwire is simply an electronic messaging system that allows banks to communicate with each other concerning foreign exchange transactions.
D) Fedwire facilitates government approval of all foreign exchange transactions conducted by U.S.entities.