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Question
FX risk exposure of an FI essentially relates to which of the following activities?
A. Purchase and sale of foreign currencies to allow customers to participate in and complete international commercial trade transactions.
B. Purchase and sale of foreign currencies to allow customers to take positions in foreign real and financial investments.
C. Purchase and sale of foreign currencies for hedging purposes to offset customer exposure in any given currency.
D. Purchase and sale of foreign currencies for speculative purposes through forecasting or anticipating future movements in FX rates.
E. None of the above.
Answer
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