A U.S. bank has €40 million in assets and €50 million in CDs. All other assets and liabilities are in U.S. dollars. This bank is

A. net long €10 million.
B. net short €10 million.
C. neither short nor long in €.
D. net long -€10 million.
E. net short -€10 million.

Ans: B. net short €10 million.

Business

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