Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A)By directly matching its foreign asset and liability book, an FI can lock in a positive return on profit spread if exchange rates rise over the investment period.
• B)By directly matching its foreign asset and liability book, an FI can lock in a positive return on profit spread if exchange rates fall over the investment period.
• C)By directly matching its foreign asset and liability book, an FI can lock in a positive return on profit spread whichever direction exchange rates change over the investment period.
• D)By directly matching its foreign asset and liability book, an FI holds a neutral position, that is, earnings equalling zero, whichever direction exchange rates change over the investment period.

---

Definitions:

Emotional Energy

The capacity or force within individuals that fuels enthusiasm, motivation, and the drive to engage in activities or overcome challenges.

Internships

Structured work experiences offered by organizations for a limited period of time, often to students or young professionals, to gain practical experience in a particular field.

Self-defeating

Behaviors or attitudes that hinder personal progress or success, often despite one's own interests or objectives.

Dysfunctional Support

Assistance or support that instead of helping, creates more problems or hinders the situation or individual.