Short-Term Foreign Exchange Forecasts Are Often Motivated by Such Activities

question 16

Multiple Choice

Short-term foreign exchange forecasts are often motivated by such activities as ________ whereas long-term forecasts are more likely motivated by ________.

• A) long-term investment; long-term capital appreciation
• B) long-term capital appreciation; desire to hedge a receivable
• C) the desire to hedge a payable; the desire for long-term investment
• D) the desire for long-term investment; the desire to hedge a payable

---

Definitions:

Quantitative Restriction

Measures imposed by governments to limit the quantity of goods that can be imported or exported over a specified period.

Luxury Automobiles

High-end cars that offer superior performance, comfort, and amenities, often associated with status, exclusivity, and a high price point.

Quota

A fixed share or a specific limit on goods or services, often imposed by governments on imports or exports.

Importing

The process of bringing goods or services into a country from abroad for sale.