Vidyalelo
Management · Q658

International Finance and Treasury

Graduate and Post Graduate · Management · question 658

Q658

Position which came in to existence because of holding assets less than liabilities is considered as

A.
net surplus in assets
B.
net surplus in liabilities
C.
net long in currency
D.
net short in currency
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Position which came in to existence because of holding assets less than liabilities is considered as net short in currency. An investor who is net short has more short positions than long positions in a given asset, industry, market, or portfolio.