Speculators Play an Important Role in a System of Floating

question 52

Multiple Choice

Speculators play an important role in a system of floating exchange rates because

• A)to make a profit, they must buy a currency when its value is low and sell it when its value is high.
• B)their purchases and sales lead to wild gyrations in exchange rates and thus increase instability.
• C)they place additional risks on businesses that need to purchase and sell foreign currency.
• D)All of the above are correct.

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Definitions:

Psychological Topics

encompass a wide range of subjects related to human behavior, mental processes, and emotional experiences.

Approach

A method or way of dealing with a problem or task, or the act of moving towards something.

Cognitive Approach

A psychological perspective that focuses on how people perceive, think about, and understand their worlds, emphasizing mental processes like memory, perception, and problem-solving.

Aggressive Behavior

Actions that are initiated with the intention of harming another individual physically or psychologically.