________________ is the sale of a foreign currency when the exchange rate falls or is lower,in the expectation that it will fall even lower in the future.

Question

Quizplus · Accepted Answer

Destabilizing speculation is the sale of a foreign currency when the exchange rate falls or is lower, in the hope of profiting from the further decline in its value. This type of speculation can contribute to currency instability and has been criticized for exacerbating economic crises in developing countries. Stabilizing speculation, on the other hand, involves buying a currency when its value is low to prevent it from declining further. Hedging is a risk management strategy used by businesses and investors to reduce exposure to currency fluctuations, while arbitrage involves exploiting price discrepancies between different markets.

________________ Is the Sale of a Foreign Currency When the Exchange