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gayaneshka [121]
4 years ago
6

Exchange rate forecasting is: Group of answer choices important because exchange rates influence all aspects of business. import

ant because markets depend on solid information. unimportant because exchange rate forecasting does not have a theoretical model. No answer text provided.
Business
1 answer:
Taya2010 [7]4 years ago
7 0

Answer: Exchange rate forecasting is important because exchange rate influence all aspects of business.

Explanation:

Exchange rate forecast is a method that is used to predict exchange rates by collecting all the relevant factors that may affect a currency.  Exchange rate forecasting is vital because exchange rates influence all aspects of business.

The exchange rate plays a vital role for firms that import raw materials and export goods. A depreciation i.e a devaluation of the currency will make exports cheaper and therefore exporting firms will benefit. Every firm is interconnected in one way or the other, therefore exchange rate is vital.

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Capital budgeting can be regarded as process that is been utilized by business in determining the type proposed fixed asset purchases that need to be declined or should be accepted. This process helps in creating quantitative view as regards the proposed fixed asset investment, so that rational basis to make make a judgment can be surfaced. It should be noted that Capital budgeting is the process of analyzing Long-term investments.

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