Will the bank exchange 1000 canadian currency to USD for me?

The people working at the bank may get a little suspicious, but they really don't have a right to know. If the money is acquired legally, and if they ask, then you can just tell them how you earned it if you like. Keep in mind that some banks do not currency transactions, although most major name-brand banks do have a currency exchange service. For every currency exchange, there is a small fee.