A Positive Net Exposure Position in FX Implies That the FI

question 73

Multiple Choice

A positive net exposure position in FX implies that the FI is net:

• A)long in a currency and exposed to depreciation of the foreign currency
• B)short in a currency and exposed to depreciation of the foreign currency
• C)long in a currency and exposed to appreciation of the foreign currency
• D)short in a currency and exposed to appreciation of the foreign currency

---

Definitions:

Senescence

The biological process of aging, characterized by a gradual decline in the functional capacity of an organism's cells, tissues, and organs.

Diathesis

An inclination or susceptibility toward the development of mental health conditions, shaped by genetic, biological, or external influences.

Homeostatic Adjustment

The process by which living organisms regulate their internal environment to maintain stable, life-sustaining conditions.

Organ Reserve

The excess capacity built into organs, allowing them to cope with extraordinary demands or to compensate for age-related degradation.