The following are the net currency positions of a U.S. FI (stated in U.S. dollars). $$\begin{array} { | l | l | r | r | r | }
\hline \text { Currency } & \text { Assets } & \text { Liabilities } & \text { FX Bought } & \text { FX Sold } \
\hline \text { British pound } & 24,600 & 70,000 & 170,400 & 321,000 \
\hline \text { Yen } & 31,000 & 20,400 & 250,000 & 220,000 \
\hline \text { Swiss franc } & 10,200 & 9,800 & 8,000 & 10,800 \
\hline
\end{array}$$
-What is the FI's net exposure in British pounds?
A)-45,400.
B)-150,600.
C)-196,000.
D)+105,200.
E)+196,000.

Question

The following are the net currency positions of a U.S. FI (stated in U.S. dollars). $$\begin{array} { | l | l | r | r | r | } 
\hline \text { Currency } & \text { Assets } & \text { Liabilities } & \text { FX Bought } & \text { FX Sold } \
\hline \text { British pound } & 24,600 & 70,000 & 170,400 & 321,000 \
\hline \text { Yen } & 31,000 & 20,400 & 250,000 & 220,000 \
\hline \text { Swiss franc } & 10,200 & 9,800 & 8,000 & 10,800 \
\hline
\end{array}$$
-What is the FI's net exposure in British pounds?
A)-45,400.
B)-150,600.
C)-196,000.
D)+105,200.
E)+196,000.

Quizplus · Accepted Answer

To calculate the net exposure in British pounds, we need to subtract the value of FX sold from the value of FX bought, which gives us a net FX position of -150,600 (170,400 - 321,000 = -150,600) in British pounds.

The Following Are the Net Currency Positions of a U