Examples of a Business Motivation for Long-Run Exchange Rate Forecasts

question 26

Multiple Choice

Examples of a business motivation for long-run exchange rate forecasts include all but which of the following?

• A) a major capital investment in a foreign country
• B) the desire to hedge a 90-day security
• C) a portfolio manager considering investing in foreign securities
• D) All of the above are examples of a business motivation for long-run exchange rate forecast.

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Definitions:

Governmental Responsibilities

Duties and obligations that a government is expected to carry out for the benefit of its citizens, including providing public services, ensuring national security, and upholding the law.

Federal Arrangement

A political system where power is divided between a central government and various regional governments.

Diverse Ethnic

Referring to a variety of ethnic groups and cultures within a given population.

Expressed Powers

Powers explicitly granted to the government or its branches by a constitution, particularly found in the U.S. Constitution.