If an International Currency Speculator Expects That Country a Will

question 62

Multiple Choice

If an international currency speculator expects that country A will soon be forced to devalue its currency,the speculator will

• A) buy as much of that currency as possible.
• B) sell all of his holdings of that currency.
• C) not be concerned because the devaluation will affect only the domestic prices of goods within country A's borders,not international prices.
• D) not be concerned because only a revaluation will affect his or her profits.

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Definitions:

Sociological Approach

A way of understanding human behavior and its impact on society through the study of social structures, interactions, and systems.

Saskatchewan

A province in Canada known for its vast expanses of prairies and a significant agricultural sector.

Atlantic Canada

A region in Eastern Canada comprising four provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, known for its unique culture and economic challenges.

British Columbia

A province in Canada known for its natural beauty, including mountains, forests, and the Pacific coastline.