7) Choose the correct balances in this transaction: a currency trader employed at Bank A sells 60,000 to a currency trader at Bank B for $90,000 using its correspondent relationship with Bank B. 1. Bank A's dollar-denominated account will fall by $90,000. II. Bank A's pound-denominated account will fall by 60,000. III. Bank B's pound-denominated account will rise by 60,000. a) I only d) I and II only b) Il only c) None of the above answers c) III only 8) The future market 1. involves the almost-immediate purchase or sale of foreign exchange. II. does not involve the sale of futures, forwards, and options on foreign exchange. has more counterparty risk than the spot market. a) I only d) I & III only b) II only c) None of the above answers c) III only 9) Which of the following statements are false? L. As a seller of the future contract, you gain if the next-day (later) price decreases from the future agreed price. II For forward contracts, there are daily settlements which reduce/eliminate counter party risks. III. Similar to a future contract, you can enter an option contract without any up-front cost. a) I only d) I and II only b) II only e) None of the above answers c) III only