Destabilizing Speculation Refers to

question 173

Multiple Choice

Destabilizing speculation refers to

• A)actions taken by the International Monetary Fund that increase lending to countries who have pegged their currencies against the dollar.
• B)actions taken by currency traders to sell a currency that is undervalued.
• C)actions taken by investors who sell a country's currency in anticipation of buying it back later at a lower price.
• D)any depreciation of a country's currency as a result of long-run adjustments to purchasing power parity.

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Definitions:

Fama-French Three-factor Model

A model that expands the CAPM by adding size risk and value risk factors to the market risk factor, explaining stock returns more accurately.

Firm Size

Generally refers to the scale of a business entity in terms of its assets, revenues, or number of employees, which can affect its operations and financial performances.

Book-to-market Ratio

A valuation metric comparing a company's book value to its market value.

Market Index

A statistical measure that shows changes in a financial market by tracking the performance of a set of selected stocks.