A Bank Faces Foreign Exchange Risk When

question 72

Multiple Choice

A bank faces foreign exchange risk when:

• A)It has assets denominated in one currency and liabilities in another
• B)It lends to foreign borrowers because they are less likely to repay a U.S.bank
• C)Foreign governments restrict dollar-denominated payments
• D)It has branches in other countries

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Definitions:

2-Methylamino-1-ethanol

An organic compound comprised of an ethanol backbone with a methylamino substituent, commonly used in chemical synthesis and as an intermediate.

Phosgene

A toxic chemical compound with the formula COCl2, used in the production of organic chemical compounds as a reagent or intermediate.

Compound

A chemical substance made up of two or more different elements that are chemically bonded together in a fixed ratio.

Dimethylheptanoic Acid

denotes a hypothetical organic compound, potentially misnamed, suggesting a heptanoic acid derivative substituted with two methyl groups.