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The British pound (GBP) rises in value relative to the dollar. Consider a U.S. bank with a European trading subsidiary in London (which earns profit

The British pound (GBP) rises in value relative to the dollar. Consider a U.S. bank with a European trading subsidiary in London (which earns profit in pounds).

This appreciation either benefits or harms the U.S. bank, since each pound it earns in profits through its European subsidiary is now worth either more or fewer dollars?

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