If a Firm Has More Foreign Currency Assets Than Liabilities,and

question 19

Multiple Choice

If a firm has more foreign currency assets than liabilities,and no other foreign currency transactions,it has

• A)positive net exposure.
• B)negative net exposure.
• C)a fully balanced position.
• D)zero net exposure.

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Definitions:

National Currency

National currency refers to the official money issued by a country's government or central bank, used as the medium of financial transaction within its borders.

Federal Reserve System

The central banking system of the United States, established in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system.

Eligible Male Voters

Men who meet specific legal criteria, such as age and residency requirements, granting them the right to vote in elections.

Presidential Election

The process by which the President of the United States is elected, typically held every four years through an Electoral College system.