Matching the Foreign Currency Book Does Not Protect the FI

question 31

Multiple Choice

Matching the foreign currency book does not protect the FI from:

• A)sovereign country risk
• B)interest rate risk
• C)liquidity risk
• D)foreign exchange risk

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Definitions:

Consistency

The quality of always behaving or performing in a similar way, maintaining the same standards over time.

Consensus

General agreement among a group or the process of reaching such agreement, typically through discussion and negotiation.

Distinctiveness

The quality of being noticeably different and unique from others, often used to describe features, identities, or products that stand out.

Consistency

The quality of maintaining uniformity, coherence, and reliability in actions, values, methods, measures, or principles over time.