Question 18 2 pts On-balance sheet hedging, which involves matching foreign assets and foreign liabilities, can help a financial institution (FI) hedge against foreign exchange risk because if the domestic currency appreciates relative to the foreign currency, the Fl will receive on the asset side but they will on the liability side and if the domestic currency depreciates relative to the foreign currency, the Fl will pay. on the liability side but they will also receive on the asset side. also pay less; more; less; more more; more; less; more more; less; less; more more; more; less; less less; less; more; more