24-67 If a US bank has variable-rate assets in US dollars and fixed-rate liabilities in Euros,the bank is exposed to
A)interest rate increases and an appreciation of the dollar.
B)interest rate declines and an appreciation of the dollar.
C)interest rate increases and a depreciation of the dollar.
D)interest rate declines and a depreciation of the dollar.
E)zero exposure to interest rate and exchange rate exposures.

Question

Quizplus · Accepted Answer

The Answer of 24-67 If a US bank has variable-rate assets in US dollars and fixed-rate liabilities in Euros,the bank is exposed to
A)interest rate increases and an appreciation of the dollar.
B)interest rate declines and an appreciation of the dollar.
C)interest rate increases and a depreciation of the dollar.
D)interest rate declines and a depreciation of the dollar.
E)zero exposure to interest rate and exchange rate exposures.

24-67 If a US Bank Has Variable-Rate Assets in US