Currency Speculation Takes Place When

Multiple Choice

Currency speculation takes place when

A) there is short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates.
B) the exchange rate at which a foreign exchange dealer will convert one currency differs on a particular day.
C) there is a simultaneous purchase and sale of a given amount of foreign exchange for two different value dates.
D) the purchase of securities in one market are immediately resold in another to profit from a price discrepancy.
E) the growth in a country's money supply exceeds the growth in its output, leading to price inflation.