The reasons nondepository FIs have less FX risk than major money center banks include
A)Smaller asset sizes.
B)Prudent person concerns.
C)Regulations.
D)All of the options.
E)Smaller asset sizes and regulations.

Question

Quizplus · Accepted Answer

Nondepository financial institutions (FIs) typically have less foreign exchange (FX) risk than major money center banks due to a combination of smaller asset sizes, prudent person concerns, and regulatory constraints, all of which limit their exposure to FX risk.

The Reasons Nondepository FIs Have Less FX Risk Than Major