GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Currency speculation is ____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations.
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stabilizing
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inflationary
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deflationary
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destabilizing
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Explanation:
Detailed explanation-1: -The effect of speculation on exchange rate is (A) It causes violent fluctuations in exchange rate.
Detailed explanation-2: -The foreign exchange market (forex) is one method that people commonly use for currency speculation. Individuals often engage in currency speculation, though the practice is also common among other financial entities.
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