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lara31 [8.8K]
3 years ago
7

Forecasting exchange rates involves: (a) knowing the history of exchange rate behavior. (b) assessing data on money supply growt

h and potential real income growth. (c) understanding the relationship between monetary policy and unemployment. (d) assessing data on money supply and unemployment.
Business
1 answer:
Musya8 [376]3 years ago
3 0

Answer:

The correct answer is letter "A": knowing the history of exchange rate behavior.

Explanation:

Forecasting exchange rates can help minimize risks and maximize returns. Forecasting techniques include technical forecasting, fundamental forecasting, and a mixture of the two of them.  Technical forecasting uses historical exchange rate data to "predict" future exchange rates. Fundamental forecasting uses fundamental relationships among economic variables -<em>interest rates, inflation, income, for instance</em>- and exchange rates.

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B is Correct

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