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Suppose XYZ Bank holds assets denominated in Yen of 150 million and liabilities denominated in Yen of 90 million. They also have Yen purchases of
Suppose XYZ Bank 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. Whn would XYZ BANK experience a loss in the currency market?
A. When XYZ dollar declines in value relative to the yen
B. When the euro declines in value
C. None of the options is correct.
D. When the yen increases in value relative to XYZ dollar.
E. When the yen declines in value relative to XYZ dollar.
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