FX Risk Exposure of an FI Essentially Relates to Which

question 32

Multiple Choice

FX risk exposure of an FI essentially relates to which of the following activities?

• A)Purchase and sale of foreign currencies to allow customers to participate in and complete international commercial trade transactions.
• B)Purchase and sale of foreign currencies to allow customers to take positions in foreign real and financial investments.
• C)Purchase and sale of foreign currencies for hedging purposes to offset customer exposure in any given currency.
• D)Purchase and sale of foreign currencies for speculative purposes through forecasting or anticipating future movements in FX rates.
• E)None of the above.

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Definitions:

Clerical Work

Tasks related to general office management, such as filing, typing, and handling correspondence, typically requiring attention to detail.

Specialized Work

Work focused on a particular industry, sector, or area of expertise, requiring specific skills or knowledge.

Benefit Packages

A collection of non-wage compensations provided to employees in addition to their normal salaries or wages.

Formal Work Environment

A workplace setting that follows strict rules of conduct, dress code, and organizational structure.