Which of the Following Statements Concerning Speculators Is True

question 218

Multiple Choice

Which of the following statements concerning speculators is true?

• 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:

Lessee

An individual or entity that leases or rents property from the owner under a contract.

Title

The legal right to own, possess, or use property.

Consequential Damages

Compensation for losses that do not directly flow from an act but result indirectly from it.

Liability

The state of being legally responsible for something, particularly in the context of debts or legal judgments.