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Currency speculation is _____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations ?

A. destabilizing

B. stabilizing

C. inflationary

D. deflationary

Related Questions on Foreign Exchange Mcqs for Economics

A fiscal expansion in the UK ?

A. has no predictable effect on the price of the pound sterling?

B. does not affect the price of the pound sterling

C. tends to appreciate the pound sterling

D. tends to depreciate the pound sterling

The agreements that were reached at the Bretton Woods conferences in 1944 established a system ?

A. of essentially fixed exchange rates under which each country agreed to intervene in the foreign exchange market when necessary to maintain the agreed

B. in which the value of currencies was fixed in terms of a specific number of ounces of gold, which in turn determined their values in international tra

C. of floating exchange rates determined of the supply and demand of one nation’s currency relative to the currency of other nations

D. That prohibited governments from intervening in the foreign exchange markets