14-29 Directly matching foreign asset and liability books in the same FX currency will allow an FI to hedge or lock in a profit spread regardless of future changes in exchange rates.

Question

Quizplus · Accepted Answer

This is true as matching a foreign asset and liability in the same currency eliminates the currency risk associated with them, allowing the FI to lock in a profit spread regardless of future changes in exchange rates.

14-29 Directly Matching Foreign Asset and Liability Books in the Same