Which of the following statements is true?
A)Holding more assets than liabilities in a given currency is referred to as a net short position.
B)Holding more assets than liabilities in a given currency is referred to as a net long position.
C)Holding more assets than liabilities in a given currency is referred to as a gross short position.
D)Holding more assets than liabilities in a given currency is referred to as a gross long position.

Question

Quizplus · Accepted Answer

A net long position is when an entity holds more assets than liabilities in a given currency. It means that the value of their assets is greater than the value of their liabilities, which is a desirable position to be in for investors.

Which of the Following Statements Is True