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A U.S. bank has 120 million in loans to corporate customers and has 60 million in deposits it owes to customers with the same maturity.
A U.S. bank has 120 million in loans to corporate customers and has 60 million in deposits it owes to customers with the same maturity. The bank has also purchased 20 million pounds forward. The bank's net exposure is_______ and the bank is exposed to a (n) ______of the British pound.
80 million; depreciation
140 million; appreciation
80 million; appreciation
100 million; depreciation
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