Good, Inexpensive, and Fairly Reliable Predictors of Future Exchange Rates

question 50

Multiple Choice

Good, inexpensive, and fairly reliable predictors of future exchange rates include

• A)today's exchange rate.
• B)current forward exchange rates (e.g. the six-month forward rate is a pretty good predictor of the spot rate that will prevail six months from today).
• C)esoteric fundamental models that take an econometrician to use and no one can explain.
• D)both a and b

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