Suppose that this month the exchange rate has decreased to $$1\mathrm{.}12$ 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 Nevada$$s account by this amount, denominated in $.$ The bank must then convert this amount to

and credit it to Spicurity$$s account.

True or False: The bank has not acted as a foreign exchange dealer in this transaction.