In the foreign exchange market, ________ seek all of their profit from exchange rate changes while ________ seek to profit from simultaneous exchange rate differences in different markets.

Question

Quizplus · Accepted Answer

Speculators seek to profit from exchange rate changes by taking positions in the market based on their expectations of future price movements. Arbitragers, on the other hand, seek to profit from simultaneous exchange rate differences in different markets by taking advantage of pricing discrepancies between them. Therefore, option C is the correct answer.

In the Foreign Exchange Market, ________ Seek All of Their