Assume an FI Holds US$200 000 in Assets and US$150

question 9

Multiple Choice

Assume an FI holds US$200 000 in assets and US$150 000 in liabilities.Which of the following statements is true?

• A)The FI has a net long in US$.
• B)The FI has a net short in US$.
• C)The FI has a net exposure of $50 000.
• D)The FI has a net exposure of -$50 000.

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Definitions:

Labor Earnings

Income received by workers for their labor or services, typically measured in terms of wages, salaries, or commissions.

Negative Income Tax

A system of social welfare that provides income to individuals or families below a certain income level, effectively supplementing their income.

Medicaid

A government-sponsored insurance program in the United States providing health care coverage to low-income individuals and families.

Libertarians

Individuals who advocate for minimal government intervention in personal and economic affairs, emphasizing individual liberty and free markets.