Hi.

TRUE OR FALSE. Please state your explanations.

41.

Under the terms of the International Lending and Supervision Act, the size of loan rescheduling fees that U.S. banks charge their international borrowers, is restricted.

TrueFalse

42.

An international bank with a positive net exposure in a given foreign currency is said to be in a net short position in that particular currency.

TrueFalse

43.

An international bank's net position in a foreign currency is measured by the difference between the volume of that currency purchased and the volume of that currency sold.

TrueFalse

44.

If an international bank has gone net long in a particular currency, it will score a positive gain if the value of that currency declines.

TrueFalse

45.

If an international bank has adopted a net short position in a particular currency, and that currency's exchange value increases, the bank will achieve a profit from trading the currency.

TrueFalse

46.

A bank's net foreign-currency-denominated assets in a given currency are equal to the volume of its assets denominated in that currency less any liabilities that the bank has issued denominated in the same currency.

TrueFalse

47.

Short hedges in currency futures contracts are used to protect a bank or bank customer against rising currency prices.

TrueFalse

48.

A put option on currency futures is often used to protect against a rise in currency prices.

TrueFalse

49.

A call option is often employed to protect a bank or bank customer against losses from falling currency prices.

TrueFalse

50.

A foreign currency swap fully removes the borrower's currency risk exposure.

TrueFalse