An FI That Holds More Foreign Currency Liabilities Than Assets

question 16

True/False

An FI that holds more foreign currency liabilities than assets has a net long position.

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Definitions:

Base of Support

The area beneath an object or person that includes every point of contact that the object or person makes with the supporting surface.

Centre of Gravity

The point in a body or system where the weight is evenly distributed and about which the body is balanced.

Balance

The ability to maintain the body's center of mass over its base of support, crucial for standing and moving efficiently and avoiding falls.

Ligament Tear

A ligament tear refers to damage to a ligament, the fibrous connective tissue that connects bones to other bones, often caused by twisting or a sudden impact.