Question: How can changes in foreign exchange rates affect the profitability of financial institutions? ( Check all that apply. ) Changes in foreign exchange rates: A
How can changes in foreign exchange rates affect the profitability of financial institutions? Check all that apply.
Changes in foreign exchange rates:
A lead to central bank intervention in financial institutions' activities.
B cause changes in mortgage interest rates and other interest rates set by financial institutions.
C change the value of assets held by financial institutions.
D affect the profits made by traders in foreign exchange who work for financial institutions.
E do not affect the profitability of financial institutions if there is no central bank intervention.
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