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Management · Q746

International Finance and Treasury

Graduate and Post Graduate · Management · question 746

Q746

Greater exposure bigger the

A.
Investment
B.
Spot rate
C.
Forward rate
D.
Risk
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Greater exposure bigger the risk. Gross exposure is a measure that indicates total exposure to financial markets, thus providing an insight into the amount at risk that investors are taking on. The higher the gross exposure, the bigger the potential loss (or gain).