If Virtually All Speculators Buy a Currency Just Before What

question 23

Multiple Choice

If virtually all speculators buy a currency just before what would be the cyclical low points in the currency's value without speculative activity, this speculation is likely to be__________ with respect to its impact on the amplitude of the cycle; if the speculators Sell the currency just before what would otherwise be the high values of the currency During its fluctuations, this speculation __________ in its impact on the amplitude of the Cycle..

• A) destabilizing; also is likely to be destabilizing
• B) destabilizing; is likely to be stabilizing
• C) stabilizing; is likely to be destabilizing
• D) stabilizing; also is likely to be stabilizing

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business, whichever is longer.

Converted Into Cash

The process of liquidating assets or investments to generate cash flow or liquidity.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, considered as current assets on a balance sheet.

Current Asset

Current Assets are assets expected to be converted into cash, sold, or consumed during a company's next operating cycle or within a year, including cash, inventory, and accounts receivable.