Assume an FI Holds US$200 000 in Assets and US$150

question 10

Multiple Choice

Assume an FI holds US$200 000 in assets and US$150 000 in liabilities. Which of the following statements is true?

• A) The FI has a net long in US$.
• B) The FI has a net short in US$.
• C) The FI has a net exposure of $50 000.
• D) The FI has a net exposure of -$50 000.

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Definitions:

Generalization

The process in a learning context where a response is elicited by stimuli similar to the original stimulus.

Facilitate

To make an action or process easier by providing assistance or reducing obstacles.

Cognitive Psychology

Cognitive psychology is a branch of psychology that studies mental processes such as perception, thinking, memory, and decision-making.

Mental Processes

The thoughts, feelings, and motives that people experience privately but that cannot be observed directly.