Speculating in a position exposed to exchange-rate risk is the act of reducing or eliminating a net asset or net liability position in the foreign currency.

Question

Quizplus · Accepted Answer

Speculating in a position exposed to exchange-rate risk typically involves taking on risk to potentially earn profits from currency fluctuations, rather than reducing or eliminating a net asset or liability position.

Speculating in a Position Exposed to Exchange-Rate Risk Is the Act