Which of the Following Is True Regarding Forecast Errors

question 27

Multiple Choice

Which of the following is true regarding forecast errors?

• A)Forecasts for the Chinese yuan are likely to have large forecast errors because the yuan is a volatile currency.
• B)Potential forecast errors may vary depending on the time horizon, the currency's volatility, and whether the country issuing the currency is experiencing political problems.
• C)Forecasts for currencies in high-inflation countries will be more accurate if they use the spot rate rather than the forward rate because the spot rate captures the difference in interest rates (and thus inflation rates) between two countries.
• D)B and C

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Definitions:

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Collective Bargaining Laws

Legislation that governs the negotiation processes between employers and a group of employees aimed at reaching agreements that regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Surface Bargaining

A tactic in labor negotiations where one party pretends to negotiate while having no intention to reach an agreement or compromise.

Negotiating Team

A group of individuals designated to negotiate on behalf of an organization or group, such as a labor union or an employer, during collective bargaining sessions.