Currency speculators aid international trade by:

Question

Quizplus · Accepted Answer

Currency speculators help absorb the exchange rate risk that businesses may not want to bear, by taking the risk upon themselves. This helps to stabilize exchange rates and, in turn, aids international trade. Option B is incorrect, as increased volatility in exchange rates can actually hinder trade. Option C is also incorrect, as currency speculators do not impact the elasticity of demand for imports. Option D is unrelated to the role of currency speculators in international trade.

Currency Speculators Aid International Trade By