Assume the Following Information

question 55

Multiple Choice

Assume the following information:
Predicted Value of Realized Value of
Period New Zealand Dollar New Zealand Dollar
1 $.52 $.50
2 .54 .60
3 .44 .40
4 .51 .50
Given this information,the mean absolute forecast error as a percentage of the realized value is about:

• A) 1.5%.
• B) 26%.
• C) 6%.
• D) 6.5%.
• E) none of the above

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Definitions:

National Banks

Financial institutions that are chartered by the federal government and play a key role in the country’s financial system and economy.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from the Federal Reserve Bank's lending facility.

Federal Reserve Banks

The 12 regional banks in the Federal Reserve System which serve as the central bank of the United States, responsible for implementing monetary policy, supervising and regulating financial institutions, and providing services to depository institutions, the U.S. government, and foreign official institutions.

Central Banks

National banks that provide financial and banking services for a country's government and commercial banking system, as well as implementing government's monetary policy and issuing currency.