Speculative attacks against a currency are caused by fears of:
A)exchange rate revaluations.
B)exchange rate devaluations.
C)monetary policy tightening.
D)balance-of-payments surpluses.

Question

Quizplus · Accepted Answer

A speculative attack is a massive selling of domestic currency assets by domestic and foreign financial investors, often brought on by fears that an overvalued currency will soon be devalued.

Speculative Attacks Against a Currency Are Caused by Fears Of