The ________ School of Thought Argues That Forward Exchange Rates

question 2

Multiple Choice

The ________ school of thought argues that forward exchange rates do the best possible job of forecasting future spot rates and therefore investing in forecasting services would be a waste of money.

• A) inefficient market
• B) efficient market
• C) random walk
• D) speculative

---

Definitions:

Variable Overhead

Generic term for the costs of production that fluctuate with the level of output, including expenses like utilities or raw materials.

Direct Labor-Hours

The number of labor hours spent directly on the production of goods or services.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services and are a significant portion of production costs.

Variable Overhead

Costs that fluctuate with the level of production output, including expenses like utilities and raw materials.