Speculators serve no useful function in a market.

Question

Quizplus · Accepted Answer

While speculators may not directly produce or consume goods, they can help to facilitate market liquidity and price discovery by taking on risks that others are unwilling to bear. Additionally, they can provide valuable information about supply and demand conditions by closely monitoring market activity. Therefore, speculators can play a valuable role in promoting more efficient and effective market outcomes.

Speculators Serve No Useful Function in a Market