In International Finance, Speculation Involves

question 63

Multiple Choice

In international finance, speculation involves:

• A) not being able to make a commitment to buy or sell.
• B) taking a risk by purchasing (or selling) a foreign currency asset, holding it in anticipation of a rate increase (decrease).
• C) simultaneously buying several currencies to ensure that at least one will rise in value.
• D) avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.