In foreign exchange,a(n) _____ is said to have occurred when investors move in the same direction at the same time,like a herd.
A) placebo effect
B) bandwagon effect
C) edge effect
D) positive correlation

Question

In foreign exchange,a(n) _____ is said to have occurred when investors move in the same direction at the same time,like a herd.
A) placebo effect 
B) bandwagon effect 
C) edge effect 
D) positive correlation

Quizplus · Accepted Answer

The bandwagon effect occurs when investors follow the herd and move in the same direction at the same time. This can lead to a self-fulfilling prophecy, as more investors follow the trend, causing prices to rise or fall even further. In foreign exchange, this can lead to abrupt changes in exchange rates.

In Foreign Exchange,a(n) _____ Is Said to Have Occurred When