Speculators in the financial market are:
A) debated by some as to whether they contribute to the financial system's success.
B) seen by most as necessary for the health of the financial system.
C) largely thought to be detrimental to the overall health of the financial system.
D) illegal, and often work in the "grey" markets despite this.

Question

Quizplus · Accepted Answer

There is debate among experts about whether speculators contribute to the success of the financial system. While some argue that they provide much-needed liquidity and can help to efficiently allocate capital, others believe that they engage in risky and destabilizing behavior that can lead to market crashes and other problems. Ultimately, the answer likely depends on a variety of factors, including the specific types of speculators involved and the regulatory environment in which they operate.

Speculators in the Financial Market Are