The reasons for smaller exposure of foreign exchange than US money center are ____________?
Correct answer: D. all of the above
- A. regulations
- B. prudent individuals
- C. smaller size of assets
- D. all of the above
Explanation
Foreign-exchange exposure may be smaller because of regulatory limits, cautious risk management, and smaller asset bases compared with major US money-center institutions. Since all three factors contribute, the inclusive option is appropriate.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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