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Suppose that this month the exchange rate has decreased to $ 1 . 1 2 and that it is time for Nevada Co . to
Suppose that this month the exchange rate has decreased to $ and that it is time for Nevada Co to makes its monthly purchase of materials from Spicurity.
In order to conduct this transaction this month, Nevada Co now requires $
to pay for the materials. Thus, the bank handling the transaction must reduce Nevadas account by this amount, denominated in The bank must then convert this amount to
and credit it to Spicuritys account.
True or False: The bank has not acted as a foreign exchange dealer in this transaction.
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