Which of the Following Statements Is True

question 17

Multiple Choice

Which of the following statements is true?

• A) Speculators do irreparable harm in general to the foreign exchange market.
• B) Speculators help make the foreign currency market more liquid and more efficient.
• C) Speculators help make the foreign currency market less liquid and less efficient.
• D) Governments that attempt to maintain a fixed exchange rate must generally intervene less frequently than those that have floating exchange rates.

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