14-63 How Would You Characterize the FI's Risk Exposure to Fluctuations

question 37

Multiple Choice

14-63 How would you characterize the FI's risk exposure to fluctuations in the yen/dollar exchange rate?

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

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Definitions:

Medulla Oblongata

Inferior portion of the brainstem that connects the spinal cord to the brain and contains autonomic centers controlling functions such as heart rate, respiration, and swallowing.

Pons

Portion of the brainstem between the medulla and midbrain.

Rhythmicity

The regular or cyclic pattern of occurrences, such as the heartbeat or breathing rates, within an organism.

Pontine Respiratory Group

A collection of neurons in the pons part of the brainstem that plays a critical role in controlling the rate and pattern of breathing.