Matching the Foreign Currency Book Protects the FI From

question 8

Multiple Choice

Matching the foreign currency book protects the FI from:

• A)sovereign country risk
• B)interest rate risk
• C)liquidity risk
• D)foreign exchange risk

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Definitions:

Undercapitalization

The lack of funds to operate a business normally.

Small-Business Failure

A situation where a small-sized business is unable to continue operation due to financial, managerial, or market-related problems.