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Question 18 5 Points Bank USA just made a one-year $10 million loan that pays 10 percent interest annually. The loan was funded with a

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Question 18 5 Points Bank USA just made a one-year $10 million loan that pays 10 percent interest annually. The loan was funded with a Swiss franc- denominated one-year deposit at an annual rate of 6 percent. The current spot rate is SF1.05/$1. Bank USA is exposed to A SF appreciation relative to $ B SF depreciation relative to $ $ appreciation relative to SF D $ depreciation relative to SF E A and D are correct Question 19 5 Points Suppose that a U.S. FI has the following assets and liabilities: Assets Liabilities $500 million $300 million U.S. loans (one year) U.S. CDs (one year) in dollars (10%) in dollars German bond (one year, in EUR) ($200 million equivalent) This Flis (15%) A net long in EUR and exposed to depreciation of EUR. B net short in EUR and exposed to depreciation of EUR. @ O net long in EUR and exposed to appreciation of EUR. D net short in EUR and exposed to appreciation of EUR. E neither long nor short in EUR

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