An FI's Net Exposure Can Be Measured As

question 12

Multiple Choice

An FI's net exposure can be measured as:

• A)(FX liabilities_i - FX assets_i) + (FX bought_i - FX sold_i)
• B)(FX liabilities_i - FX assets_i) + (FX sold_i - FX bought_i)
• C)(FX assets_i - FX liabilities_i) + (FX sold_i - FX bought_i)
• D)(FX assets_i - FX liabilities_i) + (FX bought_i - FX sold_i)

---

Definitions:

Maturity Date

The specific date on which the principal amount of a loan, bond, or other financial instrument is due to be paid in full.

Note Receivable

A written promise that entitles the holder to receive a specified amount of money from another party on a specified date or on demand.

Pays in Full

Pays in full denotes the complete settlement of a debt or obligation, leaving no outstanding balance.

Accrued Interest

Interest that has been incurred but not yet paid.