Question

Explain why must not the treasury operate on a bonus plan that issues compensation based on unusually high rates of return on investment, nor for gains from active speculation in other currencies.

Answer 1

Answer:

the world of finance, speculation, or speculative trading, refers to the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value. With speculation, the risk of loss is more than offset by the possibility of a substantial gain or other recompense.