FIN 535 Final Exam Answers Chapter 9-Forecasting Exchange Rates

Answer key at the end

1.Which of the following forecasting techniques would best represent the use of today's forward exchange rate to forecast the future exchange rate?

a.

fundamental forecasting.

b.

market-based forecasting.

c.

technical forecasting.

d.

mixed forecasting.

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2.Which of the following forecasting techniques would best represent sole use of today's spot exchange rate of the euro to forecast the euro's future exchange rate?

a.

fundamental forecasting.

b.

market-based forecasting.

c.

technical forecasting.

d.

mixed forecasting.

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3.Which of the following forecasting techniques would best represent the use of relationships between economic factors and exchange rate movements to forecast the future...