Foreign exchange rate risk occurs because foreign exchange rates are volatile and can impact banks with exposed foreign assets and/or liabilities.

Name: Foreign exchange rate risk occurs because foreign exchange rates are volatile and can impact banks with exposed foreign assets and/or liabilities.
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Question

Quizplus · Accepted Answer

Foreign exchange rates can fluctuate rapidly, leading to potential losses or gains for banks with foreign assets and/or liabilities. This risk is known as foreign exchange rate risk.

Foreign Exchange Rate Risk Occurs Because Foreign Exchange Rates Are