Which of the Following Statements Is True of Speculators

question 59

Multiple Choice

Which of the following statements is true of speculators?

• A) There is no risk involved in their speculative activity.
• B) They simultaneously buy and sell a currency in different markets.
• C) They hope to profit by trading a currency at a different exchange rate later.
• D) Their actions do not affect exchange rates.
• E) Their actions are exactly like those of arbitrageurs.

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