The short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates is known as:
A)currency arbitrage.
B)currency speculation.
C)currency supposition.
D)short selling.

Question

Quizplus · Accepted Answer

Currency speculation involves short-term movement of funds from one currency to another in order to profit from shifts in exchange rates. Currency arbitrage involves buying and selling currencies simultaneously in different markets to take advantage of price differences. Currency supposition and short selling are not related to the movement of funds between currencies.

The Short-Term Movement of Funds from One Currency to Another