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:

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes and causes the subjective experience of emotion.

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and behavioral or expressive response.

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, and praise rather than for the satisfaction that comes from the activity itself.

Self-Regulation

The process by which an organism effortfully controls its behavior in order to pursue important objectives.