The Following Are the Net Currency Positions of a Canadian

question 86

Multiple Choice

The following are the net currency positions of a Canadian FI (stated in Canadian dollars) . How would you characterize the FI's risk exposure to fluctuations in the British pound to dollar exchange rate?

• A)The FI is net short in the British pound and therefore faces the risk that the British pound will rise in value against the U.S. dollar.
• B)The FI is net short in the British pound and therefore faces the risk that the British pound will fall in value against the U.S. dollar.
• C)The FI is net long in the British pound and therefore faces the risk that the British pound will fall in value against the U.S. dollar.
• D)The FI is net long in the British pound and therefore faces the risk that the British pound will rise in value against the U.S. dollar.
• E)The FI has a balanced position in the British pound.

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Definitions:

Temporary Employees

Workers hired on a non-permanent basis to fill short-term needs of the employing organization.

Forecasting Labor Shortage

The process of predicting future shortages in the workforce based on current trends, demographic changes, and economic factors.

Forecasting Labor Surplus

The process of predicting periods during which the number of employees exceeds the number needed by the organization.

Forecasting

The process of making predictions based on past and present data and analyzing trends to anticipate future outcomes.