If a Firm's Balance Sheet Has an Equal Amount of Exposed

question 40

Multiple Choice

If a firm's balance sheet has an equal amount of exposed foreign currency assets and liabilities and the firm translates by the temporal method, then:

• A) the net exposed position is called monetary balance.
• B) the change is value of liabilities and assets due to a change in exchange rates will be of equal but opposite direction.
• C) Both A and B are true.
• D) none of the above

---

Definitions:

Role Confusion

A situation where an individual is unsure about the expectations of a particular role they are to play in society, often leading to a sense of uncertainty about their identity.

Identity

The qualities, beliefs, personality, looks, and/or expressions that make a person (self-identity) or group (particular social category or social group).

Moral Reasoning Ability

The capacity to understand right from wrong and to reason about how to resolve ethical dilemmas.

Temperament

An individual's innate predisposition towards emotional reactivity and intensity, influencing behavior and interactions with the environment.