Fundamental Forecasters Assume That If Current Exchange Rates Reflect All

question 91

True/False

Fundamental forecasters assume that if current exchange rates reflect all facts in the market, then under similar circumstances, future rates will follow the same patterns.

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Definitions:

Gold Exchange Standard

A monetary system where countries hold reserves in a currency that is convertible into gold but do not exchange currency for gold themselves; instead, the currency can be exchanged for another currency that is convertible into gold at a fixed rate.

Current Account

A component of a country's balance of payments that measures the trade balance, net primary income, and net secondary income with foreign entities.

Deficit

The amount by which expenses or costs exceed income or revenues, commonly associated with governmental budgeting.

Current Account

A component of a country's balance of payments that measures the trade in goods and services, net income from abroad, and net current transfers.