Teaching EMRS PGT Mock Test 2023 General Knowledge Economy External Sector and Currency Exchange rate
Which one of the following statements is an appropriate description of "Currency Speculation"?
1
It is a strategy employed by governments and central banks to artificially lower the value of their currencies to achieve an unfair competitive advantage.
2
It is a sudden fall in the value of a currency against other currencies.
3
It is the act of buying and holding the foreign currency with the intention of selling it at a higher rate in the future.
4
It is an escalation of currency devaluation policies among two or more nations, each of which is trying to stimulate its own economy.