Which of the Following Statements Is True

question 34

Multiple Choice

Which of the following statements is true?

• A)The smaller the FI's net exposure in a foreign currency and the larger the foreign currency's exchange rate volatility, the larger is the potential dollar loss or gain to an FI's earnings.
• B)The smaller the FI's net exposure in a foreign currency and the smaller the foreign currency's exchange rate volatility, the larger is the potential dollar loss or gain to an FI's earnings.
• C)The larger the FI's net exposure in a foreign currency and the smaller the foreign currency's exchange rate volatility, the larger is the potential dollar loss or gain to an FI's earnings.
• D)The larger the FI's net exposure in a foreign currency and the larger the foreign currency's exchange rate volatility, the larger is the potential dollar loss or gain to an FI's earnings.

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Definitions:

Referent Power

Refers to the ability of a leader to influence others because they respect, admire, or like the leader.

Individualistic

Characterizing a culture or person that values independence, self-reliance, and personal achievement over group goals.

Empowerment

The process of providing individuals or groups with the resources, authority, and confidence to make decisions and take actions.

Coercive Power

The power or ability to force someone to do something against their will, often using threats or punishment.