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:

Hydrograph

A chart that displays the flow rate (discharge) over time at a certain location in a river, or any other flow-carrying channel or conduit.

Drainage Pattern

The arrangement of channels formed by the flow of water across the landscape, influenced by factors such as underlying rock types, topography, and climate.

Erosion Resistance

The ability of material or landform to withstand wear and transport by natural forces such as wind or water.

Fractures

Breaks in rocks along which there has been no significant movement parallel to the surfaces of the fracture.