Which of the Following Statements Is True

question 34

Multiple Choice

Which of the following statements is true?

• A)The smaller the FI's net exposure in a foreign currency and the larger the foreign currency's exchange rate volatility, the larger is the potential dollar loss or gain to an FI's earnings.
• B)The smaller the FI's net exposure in a foreign currency and the smaller the foreign currency's exchange rate volatility, the larger is the potential dollar loss or gain to an FI's earnings.
• C)The larger the FI's net exposure in a foreign currency and the smaller the foreign currency's exchange rate volatility, the larger is the potential dollar loss or gain to an FI's earnings.
• D)The larger the FI's net exposure in a foreign currency and the larger the foreign currency's exchange rate volatility, the larger is the potential dollar loss or gain to an FI's earnings.

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Definitions:

Revised Model Act

A updated legal model or framework designed to guide the development of specific legislation or regulatory standards.

Incorporated

The process of legally declaring a corporate entity as separate from its owners, providing legal protections and allowing for the raising of capital.

De Facto Corporation

A corporation that operates in all respects as a corporation despite not having completed the formalities required for legal recognition.

Ultra Vires

Actions or activities conducted by a corporation or its officers that lie beyond the powers granted by its charter or the laws.