Currency speculation is ________.

Question

Quizplus · Accepted Answer

Currency speculation involves buying or selling a currency with the expectation of generating a profit from changes in its value on the foreign exchange market. It is different from currency hedging, which involves insuring against potential losses from adverse exchange rate movements, and from investing in interest-paying securities denominated in different currencies. While currency speculation can involve buying and selling currencies across different markets, it does not necessarily have to be instantaneous or involve multiple transactions.

Currency Speculation Is ________