If a firm has more foreign currency assets than liabilities,and no other foreign currency transactions,it has

Question

Quizplus · Accepted Answer

If a firm has more foreign currency assets than liabilities, it means it is holding more foreign currency than it owes, resulting in a positive net exposure. This means that any favorable exchange rate movement will increase the value of the assets more than the liabilities, resulting in increased profits for the firm.

If a Firm Has More Foreign Currency Assets Than Liabilities,and