A Negative Net Exposure Position in FX Implies That the FI

question 101

Multiple Choice

A negative net exposure position in FX implies that the FI is

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

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Definitions:

Sound Waves

are a form of mechanical energy that travels through a medium (air, water, solids) as vibrations, producing the sensation of hearing when they reach the ear.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Perception

The process by which organisms interpret and organize sensory information to understand their environment.

Receptors

Biological proteins located on cell surfaces or within cells that bind to specific molecules, triggering a response in the cell.