An FI Usually Creates an Open Position by Taking an Unhedged

question 32

True/False

An FI usually creates an open position by taking an unhedged position in a foreign currency in its FX trading with other FIs.

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Definitions:

Contextual

Pertaining to or depending on the context of a situation, event, or concept, affecting its understanding and interpretation.

Intelligence

The ability to acquire, understand, and apply knowledge and skills, and to adapt to new situations.

Visual-recognition Memory

The ability to remember and recognize previously encountered objects, symbols, or individuals by sight.

Infant Development

The physical, cognitive, emotional, and social growth that occurs in babies from birth through their first year of life.