Which of the two types of exchange rate analyses emphasizes the use of past exchange rate data and how is it used?
What will be an ideal response?
Answer: Fundamental analysis typically uses formal economic models of exchange rate determination and macroeconomic fundamental data such as money supplies, inflation rates, productivity growth rates, and the current account to predict exchange rates. Technical analysis uses only past exchange rate data, and perhaps some other financial data, such as the volume of currency trade, to predict future exchange rates.
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The measure of forecast error where the average absolute error of each forecast is shown as a percentage of demand is
A) mean squared error (MSE). B) mean absolute percentage error (MAPE). C) bias. D) the tracking signal.
Which of the following is FALSE regarding description of a product by specification?
A) Allows purchase from a number of sources B) The minimum specifications set by the buyer are likely to become the maximum furnished by the supplier. C) Developing specifications is an inexpensive process. D) All of the above E) B and C above