An FI Usually Creates an Open Position by Taking an Unhedged

question 32

True/False

An FI usually creates an open position by taking an unhedged position in a foreign currency in its FX trading with other FIs.

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Definitions:

Alcoholic Fermentation

A biological process in which sugars such as glucose, fructose, and sucrose are converted into cellular energy, producing ethanol and carbon dioxide as by-products.

Inputs

Resources or information entered into a system for processing or for generating a specific output.

Outputs

The results or products generated from a system or process.

Glycolysis

The metabolic pathway that breaks down glucose into pyruvate, producing energy in the form of ATP and NADH, occurring in the cytoplasm.