Chapter 8 - Chapter 8 Exchange Rate Forecasting 1. * 2. *...

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Chapter 8 Exchange Rate Forecasting 1. Foreign exchange markets are efficient if . A. there are many informed investors B. exchange rates reflect all available information C. there are no barriers of funds movement D. transaction costs are negligible * E. all of the above 2. In empirical studies on foreign exchange rate forecasting, efficiency best describes the general consensus on market efficiency. A. strong-form B. semistrong-form * C. weak-form D. semiweak-form E. all of the above 3. A fundamental analysis in exchange rate forecasting involves the following except . A. inflation rates B. interest rates C. national income growth D. money supply * E. price trends 4. A technical analysis in exchange rate forecasting involves the following except . A. past price B. volume movements C. price charting * D. political factors E. filter rule 5. There are three kinds of efficient markets. These are . A. weak form efficient market B. semi-strong form efficient market C. strong form efficient market D. perfectly efficient form market * E. A, B, and C
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6. Three methods are widely used to forecast floating exchange rates. These three methods are . A. technical analysis, fundamental analysis, and forward rates B. technical analysis, market-based forecasts, and spot rates C. fundamental analysis, market-based forecasts, and forward rates * D. fundamental analysis, technical analysis, and market-based forecasts E. all of the above 7. Dufey and Giddy suggested that currency forecasting can be consistently useful or profitable only if one of four conditions is met. These conditions include the following ___. A.
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This note was uploaded on 02/16/2012 for the course FIN 7023 taught by Professor Wald during the Spring '12 term at The University of Texas at San Antonio- San Antonio.

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Chapter 8 - Chapter 8 Exchange Rate Forecasting 1. * 2. *...

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