Anita, an employee at ABX Partners, a hedge fund firm, has purchased euros because she believes that the euro will strengthen against other currencies.Which term best describes Anita's activities?

Question

Quizplus · Accepted Answer

Anita's activities of purchasing euros based on her belief that it will strengthen against other currencies is an example of speculation. Speculation involves taking a position in a financial asset with the hope of making a profit, based on the expectation of future events or market conditions.

Anita, an Employee at ABX Partners, a Hedge Fund Firm