Speculating in a position exposed to exchange-rate risk is the act of reducing or eliminating a net asset or net liability position in the foreign currency.（ ）
举一反三
- The act of taking a net asset position or a net liability position in some asset class is referred to as ____.
- A net inflow in one currency and a net outflow of about the same amount in another currency that are highly positively correlated with the former results in low exchange rate risk exposure for an MNC.
- If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.
- Hedging is the act of balancing your assets and liabilities in a foreign currency to become immune to risk resulting from future changes in the value of foreign currency.（ ）
- In order to maintain exchange rate stability, central banks often intervene in the foreign exchange market by buying and selling foreign exchange. When the local currency exchange rate (), they sell foreign exchange and withdraw local currency. A: depreciates B: appreciates C: is fixed D: none of the above