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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