Assume an Australian FI Has US$100 000 in Assets and US$200

question 70

Multiple Choice

Assume an Australian FI has US$100 000 in assets and US$200 000 in liabilities.Further, the FI has bought US$40 000 and sold US$20 000.What is the net FX bought position of the Australian FI?

• A)-US$20,000
• B)US$20,000
• C)US$80,000
• D)US$100,000

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Definitions:

Applied voltage

The external voltage applied across a component or circuit, causing electric current to pass through it.

Circuit

A closed path through which electric current flows or may flow.

Reactive Power

The portion of electricity that establishes and sustains the electric and magnetic fields in AC operations, measured in volt-amperes reactive (VAR).

RLC Series Circuit

A circuit configuration comprising a resistor (R), inductor (L), and capacitor (C) connected in series.