Currency speculation is _____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations ?

Related Mcqs:

Expansionary monetary policy ?

A. tends to lead to an appreciation of a nation’s currency B. tends to lead to a depreciation of a nation’s currency C. usually has no effect on a currency’s exchange value D. tends to lead to a depreciation of the currencies of other nations...

The least common type of transaction in the foreign exchange is a ?

A. forward transaction B. spot transaction C. swap transaction D. None of the above...

The difference between bid (buying) rates and ask (selling) rates is called the ?

A. profit B. arbitrage C. spread D. forward transaction...

In 1971, most countries ?

A. adopted a new system of fixed exchange rates B. gave up trying to fix exchange rates formally and began allowing them to be determined essentially by supply and demand C. adopted single internationally accepted currency whose use is limited to international transactions D. returned to the gold standard...

If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting inflation because ?

A. as the money supply is decreased the interest rate will increase and the price of UK exports will rise and the Price of UK imports will fall B. as the money supply is decreased the interest rate will increase, and the price of UK exports will fall and the price of UK imports will … If the Bank of England reduces the money supply to reduce inflation a floating exchange rate will aid the Bank of England in fighting...