Which of the Following Observations Is True of Technical Analysis,an

question 106

Multiple Choice

Which of the following observations is true of technical analysis,an approach to exchange rate forecasting?

• A)It draws on economic theory to construct models for predicting exchange rate movements.
• B)The variables contained in this model typically include relative money supply growth rates,inflation rates,and interest rates.
• C)There is a sound theoretical rationale for the assumption of predictability underlying this approach.
• D)Owing to its drawbacks,this approach has declined in importance over the last few years,giving way to fundamental analysis.
• E)It does not rely on a consideration of economic fundamentals.

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Definitions:

Trust

Confidence or reliance on the character, ability, strength, or truth of someone or something.

Cognition-based

Trust or attitudes that are built on the foundation of one's knowledge, reliability, and perceived competence of another party.

Withhold Judgment

An approach where one refrains from forming or expressing opinions or conclusions before obtaining full understanding or all necessary information.

Trust

The belief in the reliability, truth, ability, or strength of someone or something, fostering collaboration and communication.