A Trader at a U

question 53

Multiple Choice

A trader at a U.S.bank believes that the euro will strengthen substantially in exchange rate value during the next hour.Thus,she buys large amount of euro now and wait for the value of the euro to rise so that she can sell it later.This action is called:

• A) arbitrage, because it is a risk-free activity.
• B) arbitrage, because it is a risky activity.
• C) speculation, because it is a risk-free activity.
• D) speculation, because it is a risky activity.

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Definitions:

Individualists

Persons or ideologies focusing on the rights and importance of the individual over the collective group.

Fascists

Individuals or groups advocating for a form of far-right, authoritarian ultranationalism characterized by dictatorial power and suppression of opposition.

Capitalists

Individuals or entities that own capital goods or investments and use them to generate profits, typically by investing in businesses and supporting or engaging in commerce.

Theocratic

Pertaining to a form of government in which a deity is recognized as the supreme civil ruler, with the deity's laws being interpreted by ecclesiastical authorities.