a) What motivates FIs to hedge foreign currency exposures? What are the limitations to hedging foreign currency exposures? (5 marks)

b) Discuss factors encouraging future loan sales (6 marks)

c) What are covenants in a loan agreement? What are the objectives of covenants? How can these covenants be negative and how can they be positive? (4 marks)

This is a risk analysis subject, financial institutions management.

please no plagiarism whatsoever please!!