Assume That an FI Has the Following Assets and Liabilities

question 40

Multiple Choice

Assume that an FI has the following assets and liabilities: $$\begin{array} { | l | l | } \hline \text { Assets } & \text { Liabilities } \\\hline \text { A\$100 million loans (one year) } & \text { A\$200 million securities (one year) } \\\hline \text { A\$100 million equivalent German loans (one year) (loans made in euros) } & \\\hline\end{array}$$ Which of the following statements is true?

• A)The FI has a net long position in euros.
• B)The FI has mismatched the currency composition of its asset and liabilities portfolio.
• C)The FI has matched the maturities of its assets and liabilities.
• D)All of the listed options are correct.

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Definitions:

Central Route

A method of persuasion that involves thoughtful consideration of the arguments and content of a message.

Emotional Cues

Subtle signals indicating someone's emotional state, often communicated through facial expressions, voice tone, or body language.

Attraction

In social psychology, an attitude of liking or disliking (negative attraction).

Fear Appeal

A persuasive communication strategy that aims to elicit fear in order to influence attitudes, intentions, and behaviors.