Private investors sell domestic currency and buy foreign currency, betting that the domestic currency will be devalued. This type of action is called a

Question

Quizplus · Accepted Answer

Selling domestic currency and buying foreign currency to bet on the devaluation of the domestic currency is known as a speculative attack. This type of action is frequently used by private investors to protect themselves from currency risk or to profit from market fluctuations.

Private Investors Sell Domestic Currency and Buy Foreign Currency, Betting