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Assume That an FI Has the Following Assets and Liabilities

Question 9

Multiple Choice

Assume that an FI has the following assets and liabilities: Assets
Liabilities
A$100 million loans (one year)
A$200 million securities (one year)
A$100 million equivalent German loans (one year) (loans made in euros)
Which of the following statements is true?


A) The FI has a net long position in euros.
B) The FI has mismatched the currency composition of its asset and liabilities portfolio.
C) The FI has matched the maturities of its assets and liabilities.
D) All of the listed options are correct.

Correct Answer:

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