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

question 20

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 exposure of the Australian FI?

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

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Definitions:

Essential Nature

Refers to the inherent, fundamental qualities or characteristics that define something or someone.

Funeral Expenses

Represent the costs associated with the services, products, and preparations for a person's burial or cremation.

Necessaries

Goods and services that are essential to a minor’s health and welfare.

Emancipated

In contract law, the condition that exists when minors are no longer under the control of their parents and are responsible for their contracts.