Assume an FI holds US$200 000 in assets and US$150 000 in liabilities.Which of the following statements is true?
A)The FI has a net long in US$.
B)The FI has a net short in US$.
C)The FI has a net exposure of $50 000.
D)The FI has a net exposure of -$50 000.

Question

Quizplus · Accepted Answer

The FI has more assets than liabilities, indicating a net long position in US$ with a net exposure of $50,000.

Assume an FI Holds US$200 000 in Assets and US$150