The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-Currency speculators are traders who seek to profit from a(n):
A)shift in global demand and supply patterns.
B)increase in the price of oil.
C)sudden shift in interest rates.
D)exchange rate change by selling the currency expected to appreciate and buying the currency expected to depreciate.
E)exchange rate change by selling the currency expected to depreciate and buying the currency expected to appreciate.

Question

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
 
-Currency speculators are traders who seek to profit from a(n):
A)shift in global demand and supply patterns. 
B)increase in the price of oil. 
C)sudden shift in interest rates. 
D)exchange rate change by selling the currency expected to appreciate and buying the currency expected to depreciate. 
E)exchange rate change by selling the currency expected to depreciate and buying the currency expected to appreciate.

Quizplus · Accepted Answer

Currency speculators aim to profit from exchange rate changes by selling the currency expected to depreciate and buying the currency expected to appreciate.

The Figure Given Below Depicts the Foreign Exchange Market for British