Speculation is
A)trading on the expectation of making a profit.
B)the same as arbitrage.
C)illegal in Canada.
D)a method of appreciating the Canadian dollar.
E)a method of depreciating the Canadian dollar.

Question

Quizplus · Accepted Answer

Speculation is a form of trading where the trader makes a bet on the future price movements of an asset in the hopes of making a profit. It often involves taking on high-risk positions and is a common practice in financial markets. Arbitrage involves taking advantage of price differences in different markets to make a profit, which is not the same as speculation. While there may be regulations around speculation in certain contexts, it is not illegal in Canada. Speculation can potentially impact the value of the Canadian dollar, but it is not inherently a method of appreciating or depreciating the currency.

Speculation Is