Janae purchased 10 Bitcoins in February with the intention of holding them until October and then selling them at a higher price. Janae was engaged in
A) diversification.
B) arbitrage.
C) speculation.
D) asset liquification.

Question

Quizplus · Accepted Answer

Janae's action of buying Bitcoins with the intention of selling them at a higher price later is a classic example of speculation. Speculation involves taking on financial risk in the hope of making a profit from fluctuations in the market price of assets.

Janae Purchased 10 Bitcoins in February with the Intention of Holding