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Question
Suppose Bank of America holds assets denominated in yen of 150 million and liabilities denominated in yen of 90 million. They also have yen purchases of 70 million and yen sales of 50 million. When would Bank of America experience a loss in the currency market?
A. When the yen declines in value relative to U.S. dollars
B. When the yen increases in value relative to U.S. dollars
C. When U.S. dollar declines in value relative to the yen
D. When the euro declines in value
E. None of the options is correct.
Answer
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Related questions
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