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The Following Are the Net Currency Positions of a U

question 42

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The following are the net currency positions of a U.S.FI (stated in U.S.dollars) .  Currency Assets  Liabilities  FX Bought  FX Sold  British pound24,60070,000170,400321,000 Yen31,00020,400250,000220,000 Swiss franc10,2009,8008,00010,800\begin{array}{lrrrr}\text { Currency} &\text { Assets } & \text { Liabilities } & \text { FX Bought } & \text { FX Sold } \\\text { British pound} &24,600 & 70,000 & 170,400 & 321,000 \\\text { Yen} &31,000 & 20,400 & 250,000 & 220,000 \\\text { Swiss franc} &10,200 & 9,800 & 8,000 & 10,800\end{array} How would you characterize the FI's risk exposure to fluctuations in the Swiss franc/dollar exchange rate?


Definitions:

True Differences

Genuine or actual disparities observed between groups or conditions in a study, as opposed to those arising from experimental error or bias.

Discriminant Validity

The degree to which a measurement tool is not correlated with variables from which it should theoretically differ.

Significant Correlations

Statistical relationships between two variables where the association is strong enough to not likely be due to chance.

Constructs

Abstract concepts or theoretical entities that are devised to explain patterns in research, such as intelligence, motivation, or happiness, which are not directly observable.

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