Which of the following statements is true for an FI that holds €200,000 in assets and €150,000 in liabilities?
A)The FI is in a net long position.
B)The FI has net foreign assets of €50,000.
C)The FI faces the risk that the euro will fall in value against domestic currency.
D)All of the listed options are correct.

Question

Quizplus · Accepted Answer

The FI has €50,000 more in assets than liabilities, indicating a net long position and net foreign assets of €50,000. It also faces the risk of the euro depreciating against the domestic currency, affecting the value of its net foreign assets.

Which of the Following Statements Is True for an FI