Matching the Foreign Currency Book of Assets and Liability Maturity

question 118

Multiple Choice

Matching the foreign currency book of assets and liability maturity does not protect the FI from

• A)sovereign country risk.
• B)interest rate risk.
• C)liquidity risk.
• D)foreign exchange risk.
• E)off-balance-sheet risk.

---

Definitions:

Inexperience

The lack of experience and knowledge in a particular field or activity.

Electrical Engineering

A field of engineering that focuses on the study and application of electricity, electronics, and electromagnetism.

Hawaiian Feast

Also known as a luau, it is a traditional Hawaiian party or celebration that often includes a variety of foods, cultural performances, and music.

Surprise Birthday Party

A social event secretly organized by friends or family to celebrate someone's birthday without their prior knowledge.