An FI Acts Defensively as a Hedger to Reduce FX

question 45

True/False

An FI acts defensively as a hedger to reduce FX exposure if it engages in the purchase and sale of foreign currencies for hedging purposes to offset customer or FI exposure in any given currency.

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Definitions:

Office Park

A collection of office buildings situated on a large plot of land, typically offering a range of facilities and services for the businesses operating within.

Rights Vested

Refers to rights that are securely granted to an individual or entity, and cannot be revoked or amended without consent.

Modify or Rescind

To change, alter, or revoke an agreement or contract either partially or completely.

Incidental Beneficiary

A third party who unintentionally benefits from a contract but has no legal right to enforce the contract terms.