Question

When currency traders move as a herd in the same direction at the same time, such as what occurred when George Soros bet against the British pound in 1992, a(n) _____ occurs.

Answer 1

Answer: Bandwagon Effect

Explanation:

The bandwagon effect is simply used to describe a scenario that occurs when people behave in certain ways simply because others are doing the same thing.

In this case, when currency traders move as a herd in the same direction at the same time, such as what occurred when George Soros bet against the British pound, this shows that a bandwagon effect occured.