Vidyalelo
Management · Q655

International Finance and Treasury

Graduate and Post Graduate · Management · question 655

Q655

Larger fluctuations in portfolio value of foreign exchange of financial institutions leads to

A.
greater liquidity of assets
B.
greater volatility of rates
Answer
C.
lesser volatility of rates
D.
lesser liquidity of assets

Answer: Option B

Solution

Answer: Option B
Solution:
Larger fluctuations in portfolio value of foreign exchange of financial institutions leads to greater volatility of rates. It is the money value of your investment portfolio.