14-38 A positive net exposure position in FX implies that the FI is
A)net long in a currency and exposed to depreciation of the foreign currency.
B)net short in a currency and exposed to depreciation of the foreign currency.
C)net long in a currency and exposed to appreciation of the foreign currency.
D)net short in a currency and exposed to appreciation of the foreign currency.
E)neither long nor short in a currency.

Question

Quizplus · Accepted Answer

A positive net exposure position in FX implies that the FI is net long in a currency and exposed to depreciation of the foreign currency.

14-38 a Positive Net Exposure Position in FX Implies That