What Is a Speculative Attack on a Currency

question 31

Multiple Choice

What is a speculative attack on a currency?

• A)National governments decide to engage in competitive devaluations against a given country.
• B)International organizations such as the WTO and the IMF attempt to reorder the currency's system.
• C)Private investors sell domestic currency and buy foreign currency, betting that the domestic currency will soon be devaluated.
• D)Casinos in Las Vegas allow the proliferation of bets for and against a given currency.
• E)A country is at war, and the enemy country "freezes" all the accounts denominated in the local currency.

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Definitions:

Formal Business Plans

Detailed documents that lay out the objectives, strategies, market analysis, and financial forecasts of a business, designed to guide operations and attract investment.

Scalable Business Model

A business model designed to allow growth and expansion without significant increases in costs or complexity.

Temporary Organization

A group or entity established with a specific end goal or time frame, ceasing to exist once its purpose has been fulfilled or the project is completed.

Serial Entrepreneurship

The practice of starting multiple businesses over time, often after the initial ventures have been established, sold, or ceased operation.