What Type of Risk Focuses Upon Mismatched Currency Positions

question 64

Multiple Choice

What type of risk focuses upon mismatched currency positions?

• A)Liquidity risk.
• B)Interest rate risk.
• C)Credit risk.
• D)Foreign exchange rate risk.
• E)Off-balance sheet risk.

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Definitions:

Long-Term Orientation

A cultural dimension that reflects a society's time perspective and an attitude of perseverance and thrift.

Uncertainty Avoidance

A cultural dimension that describes the degree to which societies are willing to tolerate ambiguity and uncertainty.

Delaying Gratification

The ability to postpone immediate pleasure or satisfaction in order to achieve a longer-term goal.

Uncertainty Avoidance

A cultural dimension that describes the degree to which people in a society feel uncomfortable with ambiguity and uncertainty.