Which of the following statements is CORRECT? Forward rate should provide more accurate forecasts for currencies in low-inflation countries than the spot rate. The technical forecasting is based on a...


Which of the following<br>statements is CORRECT?<br>Forward rate should provide<br>more accurate forecasts for<br>currencies in low-inflation<br>countries than the spot rate.<br>The technical forecasting is<br>based on a wide range of data<br>regarded as fundamental<br>economic variables that<br>determine exchange rates. In<br>contrast, the fundamental<br>forecasting focuses on a much<br>smaller set of data, typically<br>the historical exchange rates.<br>O Technical forecasting model<br>can reliably forecast long-run<br>exchange rates.<br>The spot rate is a useful<br>Market-Based Forecast if the<br>expected percentage change<br>in the currency is zero over<br>the forecast period.<br>There are three main types of<br>methods to forecast exchange<br>rates: technical forecasting.<br>fundamental forecasting, and<br>market-based forecasting.<br>These three methods always<br>make the same directional<br>prediction regarding whether<br>a currency is appreciating or<br>

Extracted text: Which of the following statements is CORRECT? Forward rate should provide more accurate forecasts for currencies in low-inflation countries than the spot rate. The technical forecasting is based on a wide range of data regarded as fundamental economic variables that determine exchange rates. In contrast, the fundamental forecasting focuses on a much smaller set of data, typically the historical exchange rates. O Technical forecasting model can reliably forecast long-run exchange rates. The spot rate is a useful Market-Based Forecast if the expected percentage change in the currency is zero over the forecast period. There are three main types of methods to forecast exchange rates: technical forecasting. fundamental forecasting, and market-based forecasting. These three methods always make the same directional prediction regarding whether a currency is appreciating or

Jun 06, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here