Which of the Following Refers to Currency Speculation

question 108

Multiple Choice

Which of the following refers to currency speculation?

• A)The short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates
• B)The exchange rate at which a foreign exchange dealer will convert one currency into another that particular day
• C)Simultaneous purchase and sale of a given amount of foreign exchange for two different value dates
• D)The purchase of securities in one market for immediate resale in another to profit from a price discrepancy
• E)The growth in a country's money supply exceeding the growth in its output, leading to price inflation

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Definitions:

Acid Salt

A type of salt that contains an ionizable hydrogen atom, allowing it to act as an acid under suitable conditions.

Soluble

Ability of a substance to dissolve in a solvent, forming a homogeneous mixture at a molecular or ionic level.

Sodium Chloride

Common salt; an ionic compound with the formula NaCl, essential for life and used in food seasoning and preservation.

Soluble

The ability of a substance to dissolve in a solvent, forming a solution.