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:

Odds

The comparison of the odds of an event occurring versus the odds of it not occurring.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, expressed at a certain confidence level.

Null Hypothesis

A hypothesis that suggests there is no significant difference or effect, serving as the default position to be tested against.

Standard Deviation

is a measure of the amount of variation or dispersion in a set of values, indicating how much the values differ from the mean of the set.