8. Suppose Bank X has a correspondent banking relationship with Bank Y. Bank X receives $300 million dollars and pays GBP 150 million to Bank Y. Bank X's GBP (British Pound) deposit at Bank Y: a) Increases by $300 million b) Decreases by $300 million Increases by GBP 150 million d) Decreases by GBP 150 million 9. If Interest Rate Parity (IRP) holds between two countries then it must be true that: a) The interest rates between the two countries are equal b) Significant interest arbitrage opportunities exist between the two Curencies in question c) The interest rate differential between the two countries is equal to the percentage difference between the forward exchange rate and the spot exchange rate d) The current forward este is an unbiased predictor of the futute spot exchange tate 10. Which of the following accounting FX translation methods uses cumulative translation adjustment to balance the balance sheet: a) Current Rate Method INC/Nanna