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NEW QUESTION: 1
Which of the following methods is designed to measure transaction exposure in terms of the maximum
one day loss related to holdings denominated in foreign currency?
I. Measurement of currency variability.
II. Measurement of currency correlations.
III. Value at risk.
A. III only.
B. I only.
C. II only.
D. I, II, and III.
Choice "c" is correct. The value at risk method seeks to quantify the exposure of business to a one day
loss in the value of its positions in foreign currencies.
Choices "a", "b", and "d" are incorrect, per above Explanation: .
NEW QUESTION: 2
A. Option D
B. Option B
C. Option C
D. Option A