A Net Short Position Exposes an FI to the Risk

question 19

True/False

A net short position exposes an FI to the risk that the foreign currency could rise in value against its domestic currency.

---

Definitions:

Customer Stage

A phase within the customer journey or buying process, ranging from initial awareness to post-purchase evaluation and loyalty.

Inventory Costs

Expenses associated with holding and managing stock, including costs of storage, insurance, and depreciation.

Supply Chain

A Supply Chain encompasses the entire process of making and selling commercial goods, including raw materials, manufacturing, distribution, and the sale of the finished product.

Facilities

Buildings, equipment, and services provided for a particular purpose, especially in relation to the operation of a company or for public use.