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3 Cards in this Set
- Front
- Back
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Net short position(assets fx currency < liabilities fx currency) |
Appreciation in fx currency (depreciation in local currency) will increase the value of liabilities more than assets |
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Liquidity risk |
Risk that a sudden surge in liability withdrawals may pressure the FI into liquidating parts of its assets |
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Off balance sheet risk |
Arises if FI use contingent assets or liabilities contracts |
