______________ also adds to the uncertainty surrounding future currency movements that characterizes floating exchange rate regimes.
A) The impracticality of the gold standard
B) Monetary policy autonomy
C) Trade balance Adjustments
D) Speculation
E) Market forces

Question

Quizplus · Accepted Answer

Speculators can create volatility in foreign exchange markets by buying and selling currencies based on their expectations of future price movements. This uncertainty can make it difficult for businesses to plan and can lead to sudden and unexpected currency fluctuations.

______________ Also Adds to the Uncertainty Surrounding Future Currency Movements