7-54 Foreign exchange rate risk occurs because foreign exchange rates are volatile and can impact banks with exposed foreign assets and/or liabilities.

Name: 7-54 Foreign exchange rate risk occurs because foreign exchange rates are volatile and can impact banks with exposed foreign assets and/or liabilities.
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Question

Quizplus · Accepted Answer

Foreign exchange rates can be unpredictable and change rapidly, which can affect the value of a bank's foreign assets and/or liabilities. This creates foreign exchange rate risk for the bank.

7-54 Foreign Exchange Rate Risk Occurs Because Foreign Exchange Rates