Under floating exchange rates, investors who speculate on international currency values provide a valuable service by assuming the risks of those who do not wish to speculate.

Question

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Under floating exchange rates, investors who speculate on international currency values assume the risks of fluctuations in currency values, which allows businesses and individuals who do not wish to speculate to avoid those risks. This can be seen as a valuable service as it provides greater stability and predictability in international trade and finance.

Under Floating Exchange Rates, Investors Who Speculate on International Currency