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A financial institution has 100% of assets denominated in US dollars; however, they have 75% of liabilities in US dollars and 25% in Euros. In

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A financial institution has 100% of assets denominated in US dollars; however, they have 75% of liabilities in US dollars and 25% in Euros. In order to reduce FX risk, they switch their assets to also be 75% in US dollars and 25% in Euros. This is an example of A. Currency balancing B. On balance sheet hedging c. Off-balance sheet hedging

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