A negative net exposure position in FX implies that the FI is

Question $4$ options:

$1)$

net long in a currency and exposed to depreciation of the foreign currency.

$2)$

net short in a currency and exposed to depreciation of the foreign currency.

$3)$

net long in a currency and exposed to appreciation of the foreign currency.

$4)$

net short in a currency and exposed to appreciation of the foreign currency.

$5)$

neither long nor short in a currency.