Assume an FI Holds US$250 000 in Assets and US$350

question 15

Multiple Choice

Assume an FI holds US$250 000 in assets and US$350 000 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 US$100,000.
• D)The FI has a net exposure of -US$100,000.

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Definitions:

Igneous Rock

A kind of stone that develops through the process of magma or lava cooling and hardening.

Finely Crystalline

Describes a texture of rocks or minerals with very small crystals that are often too small to be seen unaided, indicating rapid cooling or chemical precipitation.

Glassy Texture

A description of igneous rocks that cooled quickly from molten material, resulting in a non-crystalline or vitreous appearance.

Pyroclastic Eruption

A volcanic eruption involving the explosive ejection of hot ash, lava fragments, and gases.