Which of the following is not correct?

Select one:

a.

Foreign exchange risk is the risk that exchange rate changes can affect the value of a firms assets and liabilities denominated in domestic currencies.

b.

The globalization of financial markets has increased the foreign exchange exposure of most financial institutions (FI).

c.

The net exposure to the foreign exchange risk varies depending on the degree to which the financial institution is in net long (positive) or net short (negative) in a given currency.

d.

Both a and b

e.

Both b and c