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You are a U . S . importer desiring to purchase merchandise from an Italy exporter invoiced in Euros, at a cost of 1 6
You are a US importer desiring to purchase merchandise from an Italy exporter invoiced in Euros, at a cost of You will contact your US bank A where of course you have an account denominated in US dollars and inquire about the exchange rate, which the bank quotes as Consider you accept this price. Bank A then instructs its correspondent bank B in Italy to pay the Italy exporter the amount of the purchase. What will happen to the balance sheet of Bank based on the correspondence relation between bank A and B and based on the relationship between Bank B and the Italian exporter? ie increase or decrease in asset or liability, by what amount in what currency
a Between bank A and B:
Asset or Liability will
increase or decrease in or $ in the amount of
Just answer with numbers, no comma or symbols
b Between Bank B and the Italian exporter:
Asset or Liability will
increase or decrease in or $ in the amount of
Just answer with numbers, no comma or symbols
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