With Regard to Fundamental Forecasting Versus Technical Forecasting of Exchange

question 22

Multiple Choice

With regard to fundamental forecasting versus technical forecasting of exchange rates

• A)the technicians tend to use "cause and effect" models.
• B)the fundamentalists tend to believe that "history will repeat itself" is the best model.
• C)both a and b
• D)none of the above

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Definitions:

New Debt

Refers to additional borrowing or financial obligations taken on by an individual, company, or government.

New Equity

New equity refers to funds raised by a company through the issuance of new shares in the equity market.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as an annual rate.

Long-Term Debt

Borrowings that are due for repayment in more than one year's time, used to finance a company's operations beyond its immediate needs.