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STEP 2 of 3 Suppose that this month the exchange rate has decreased to $1.00 and that it is time for Nevada ca to makes its monthly purchase of materials from Spicurity to pay for the materials. Thus, the bank handling The bank must then convert this amount to In order to conduct this transaction this month, Nevada Co now requires the transaction must reduce Nevada's account by this amount, denominated in dollars and credit it to Spicurity's account. euros True or robes the bank has not acted as a foreign exchange dealer in this tran dollars True O Fake Gepa TOTAL 2. Foreign exchange transactions 2. 3. STEP 2 of 3 Suppose that this month the exchange rate has decreased to $1.00 and that it is time for Nevada Co to makes its monthly purchase of materials from Spicunty In order to conduct this transaction this month, Nevada Co now requires the transaction must reduce Nevada's account by this amount, denominated in and credit it to Spicurity's account. to pay for the materials. Thus, the bank handling The bank must then convert this amount to True or False. The bank dollars sted as a foreign exchange dealer in this transaction. euros True False Grade Srp 2 TOTAL SCORE STEP 1 of 3 Suppose that Nevada Co., a US-based MNC, makes regular, monthly purchases of materials from a German supplier named Spicurity. These regular payments are typically in the amount of 430,000 euros. Last month the exchange rate was $1,03 per euro. Nevada Coonly has cash reserves in dollars, while Spicunty only has cash reserves in euros. Suppose both companies use the same bank In ordet to conduct this transaction last month, Nevada Co, required $412,900.00 to pay for the materials. Thus, the bank handling the transaction reduced Nevada account by this amount, denominated in dollars. The bank then converted this amount to 430,000.00 euros and credited it to Spicurity's account Is Points: Explanation: Close Explanation In order to purchase the monthly materials, Nevada needs to pay 430,000 euros to Spicunty. However, since Nevada only has cash reserves in dollars, it will need to convert dollars to euros (via their bank) in order to make this purchase. Thus, Nevada must instruct their bank to reduce

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