One Difference Between Arbitrageurs and Speculators Is That

question 52

Multiple Choice

One difference between arbitrageurs and speculators is that

• A)arbitrageurs buy and sell foreign exchange; speculators do not
• B)speculators only buy foreign exchange but do not sell it
• C)arbitrageurs take more risks than do speculators
• D)speculators take more risks than do arbitrageurs
• E)arbitrageurs buy foreign exchange in the hope that its value will increase

---

Definitions:

Punitive Damages

Financial payment provided to a harmed individual that exceeds the amount needed for loss recovery and aims to penalize the responsible party.

Homeowner's Insurance

A form of property insurance that covers losses and damages to an individual's house and assets in the home.

Good Faith

Acting with honesty and sincerity, without intent to deceive or unfair advantage, especially in contractual or negotiation contexts.

Fire Insurance Policies

Contracts that provide coverage for damage or loss to property because of fire.