An Important Effect of Foreign Currency Speculators Is That

question 80

Multiple Choice

An important effect of foreign currency speculators is that

• A)they have consistently lost money and have left the market.
• B)they have pushed exchange rates to wider extremes than most economists predicted.
• C)they actually limit the volatility of exchange rate movements.
• D)they have had no effect at all on exchange rate volatility.

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Definitions:

Social Contacts

Interactions and connections with other people in a social context.

Immediate Family

A person's closest relatives, usually consisting of parents, siblings, and children.

Phallic

Relating to or resembling a phallus or penis, often used in the context of psychological and symbolic interpretations of shapes and objects.

Freudian Stage

A phase in Sigmund Freud's theory of psychosexual development, where each stage is associated with a particular conflict that must be resolved for healthy psychological development.