Which of Statements A) Through C) Is FALSE

question 44

Multiple Choice

Which of statements a) through c) is FALSE?

• A) Attempts to forecast short term changes in exchange rates generally fail to beat a naive guess of today's spot exchange rate.
• B) Long run forecasts of nominal exchange rates have difficulty beating the current spot rate as predictors of future spot rates of exchange.
• C) Prices in the interbank foreign exchange markets are difficult to predict.
• D) More than one of the above is true.
• E) All of the above are false.

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Definitions:

Outstanding Applicant

is a candidate for a position or role who excels beyond others in qualifications, experience, or suitability.

Mediocre Applicant

A candidate for a position who does not stand out due to average performance, skills, or qualifications.

Contrast Error

A cognitive bias in performance appraisals where the evaluation is based on comparison with other individuals instead of objective standards.

Pollyanna Effect

The inclination among individuals to recall positive events or information with greater precision than negative ones.