Which of the Following Is True of the Techniques Used

question 55

Multiple Choice

Which of the following is true of the techniques used for forecasting exchange rates?

• A) Very few forecasts are completely accurate because of unexpected events that occur throughout the forecast period.
• B) The human element involved in forecasting exchange rates perfect the techniques.
• C) Fundamental analysts estimate the timing, magnitude, and direction of future exchange rate changes using charts and models of past data trends.
• D) Technical analysts often consider a country's balance-of-payments situation while forecasting exchange rates.

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Definitions:

Inadvertently Smiles

Smiling unintentionally or without conscious decision, often as a natural reaction to certain stimuli or thoughts.

Validity of Measure

Refers to the degree to which a test or instrument accurately measures what it intends to measure.

Variability

The extent to which data points in a set differ from each other and from the mean, indicating the spread or dispersion of the dataset.

Double-blind Design

An experimental design in which neither the participants nor the experimenters know who is receiving a particular treatment, used to eliminate bias in research findings.