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Consider the following question. For each choice, explain in one sentence why that choice is true or false.
A Canadian bank sells euros (EUR) and buys dollars (USD). By the end of the settlement process, the Canadian bank will hold, or record:
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An increase in the balance of its USD account at the central bank of the US (Fed).
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An increase in the balance of its USD account at the CLS Bank.
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A decrease in the balance of its EUR account at its nostro account in the euro area.
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A decrease in the balance of its reserve account at the central bank of Canada.
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An increase in the balance of its account at the central bank of Canada.
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An increase in the balance of its USD account at its nostro account in the U.S.
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