Which of the Following Statements Is True of Speculators

question 89

Multiple Choice

Which of the following statements is true of speculators?

• A)There is no risk involved in 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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Definitions:

White-Collar Crime

Non-violent crime committed by individuals, typically professionals or businesspeople, during the course of their occupation, often involving financial malfeasance or fraud.

Primary Group

A small social group characterized by close, personal relationships, enduring for a long period.

Secondary Group

A social group characterized by impersonal and formal interactions, geared towards the accomplishment of specific tasks or objectives, rather than personal relationships.

Coterie

An exclusive circle or group of individuals with shared interests or goals, often characterized by a sense of loyalty or mutual understanding.