How Would You Characterize the FI's Risk Exposure to Fluctuations

question 90

Multiple Choice

How would you characterize the FI's risk exposure to fluctuations in the British pound to dollar exchange rate?

• A)The FI is net short in the British pound and therefore faces the risk that the British pound will rise in value against the U.S.dollar.
• B)The FI is net short in the British pound and therefore faces the risk that the British pound will fall in value against the U.S.dollar.
• C)The FI is net long in the British pound and therefore faces the risk that the British pound will fall in value against the U.S.dollar.
• D)The FI is net long in the British pound and therefore faces the risk that the British pound will rise in value against the U.S.dollar.
• E)The FI has a balanced position in the British pound.

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Solution-building

A problem-solving approach focusing on identifying practical and effective solutions rather than dwelling on the problem itself.

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A mental process that involves discovering, analyzing, and solving problems to reach a goal or answer.

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An approach in educational settings that emphasizes building solutions rather than solving problems, focusing on students' strengths and possibilities.