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    Financial Institutions Management Study Set 2
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    Exam 13: Foreign Exchange Risk
  5. Question
    An FI Acts Defensively as a Hedger to Reduce FX
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An FI Acts Defensively as a Hedger to Reduce FX

Question 45

Question 45

True/False

An FI acts defensively as a hedger to reduce FX exposure if it engages in the purchase and sale of foreign currencies for hedging purposes to offset customer or FI exposure in any given currency.

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