Matching the Foreign Currency Book of Assets and Liability Maturity

question 118

Multiple Choice

Matching the foreign currency book of assets and liability maturity does not protect the FI from

• A)sovereign country risk.
• B)interest rate risk.
• C)liquidity risk.
• D)foreign exchange risk.
• E)off-balance-sheet risk.

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Definitions:

Product Caused Injury

Refers to harm that results from the use of a manufactured item, often leading to legal action based on claims of negligence or defects.

Strict Product Liability

A legal doctrine that holds sellers, distributors, or manufacturers liable for distributing a defective product to a consumer.

Defect Unexpectedly

A situation where a flaw or imperfection in a product or system appears without warning.

Warning Defect

A failure in a product to adequately instruct or inform users of potential risks or hazards, rendering it dangerous.