The Following Are the Net Currency Positions of a U

question 85

Multiple Choice

The following are the net currency positions of a U.S.FI (stated in U.S.dollars) .
Note: Net currency positions are foreign exchange bought minus foreign exchange sold restated in U.S.dollar terms.
$\begin{array}{l}\begin{array}{lll}\text {Currency}\\\text {Canaclian Dollay}\\\text {Euro}\\\text {Japane se Yen}\\\text {SWiss: Fiadc}\\\text {British Pound.}\\\end{array}\begin{array}{lll}\text {Net Position}\\\text {+U.S. \$ 1,200}\\\text {-U.S. \$ 245,900}\\\text {+U.S. \$ 505,000 }\\\text {-U.S. \$ 36,700}\\\text {+U.S. \$447,900}\\\end{array}\end{array}$
How would you characterize the FI's risk exposure to fluctuations in the yen/dollar exchange rate?

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.

Equivalent Unit

A concept used in cost accounting to express the amount of work done on incomplete units in terms of fully completed units.

Weighted-Average Method

A cost accounting method that calculates the cost per unit of inventory based on the average cost of all similar items in stock, regardless of purchase date.