Which of the following statements is true?
A)Net exposure refers to the degree to which a bank is net long (negative) or net short (positive) in a given currency.
B)Gross exposure refers to the degree to which a bank is net long (negative) or net short (positive) in a given currency.
C)Net exposure refers to the degree to which a bank is net long (positive) or net short (negative) in a given currency.
D)Gross exposure refers to the degree to which a bank is net long (positive) or net short (negative) in a given currency.

Question

Quizplus · Accepted Answer

Net exposure refers to the degree to which a bank is net long (positive) or net short (negative) in a given currency. Gross exposure refers to the total amount of exposure a bank has in a given currency, without taking into account any offsetting positions.

Which of the Following Statements Is True