The Process of Matching the Liability Created by Borrowing Foreign

question 17

Multiple Choice

The process of matching the liability created by borrowing foreign currencies with the asset created by lending domestic currency by commercial banks is known as ________ the foreign exchange risk.

• A) Capitalizing
• B) Pegging
• C) Drifting
• D) Hedging

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Definitions:

Securities Offerings

The process of issuing new securities for sale to investors, typically to raise capital for a corporation or government entity.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry and stock and options exchanges.

Letter of Comments

A document often issued by auditors or regulatory bodies outlining concerns, observations, or requests for clarification on specific points in a financial report or audit.

SEC

The United States Securities and Exchange Commission is a federal body tasked with the enforcement of federal securities legislation and the regulation of the securities sector.