A Positive Net Exposure Position in FX Implies That the FI

question 73

Multiple Choice

A positive net exposure position in FX implies that the FI is net:

• A)long in a currency and exposed to depreciation of the foreign currency
• B)short in a currency and exposed to depreciation of the foreign currency
• C)long in a currency and exposed to appreciation of the foreign currency
• D)short in a currency and exposed to appreciation of the foreign currency

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Definitions:

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market economy.

Economist

A professional who studies the production, distribution, and consumption of goods and services.

Economic Activity

Activities related to the creation, distribution, and use of goods and services in an economic system.

Market Economy

An economic system in which economic decisions and the pricing of goods and services are guided solely by the interactions of citizens and businesses.