If the Foreign Exchange Market Reflects ____, Then Historical Exchange

question 79

Multiple Choice

If the foreign exchange market reflects ____, then historical exchange rate information is not useful in forecasting exchange rate movements.

• A) weak-form efficiency
• B) purchasing power parity
• C) the international Fisher effect
• D) interest rate parity

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Definitions:

Horizontal Privity

A legal term referring to a relationship between entities at the same level of operation, often used in property and contract law to describe certain kinds of relationships relevant to the transfer of rights or obligations.

Breach Of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality, condition, or performance of a product or service.

Seller

An individual or entity that offers goods or services for sale to consumers or other businesses.

Express Warranty

A seller's explicit promise or guarantee about the condition or quality of a product.