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:

Reverberation

The persistence of a sound in a particular space after the original sound is produced, often used metaphorically to describe a lasting effect or influence.

Self-efficacy

The belief in one's own ability to succeed in specific situations or accomplish a task.

Self-references

An individual's practice of relating information or situations back to oneself, often a cognitive process related to memory and identity.

Self-discrepancies

The differences between an individual's perceived actual, ideal, and ought selves, which can influence emotional states.